Intact Financial Corporation’s net income faltered for the first time since the first quarter of 2020.  

The insurer reported net income of $300 million (M) in the third quarter of 2021. This result amounts to a decrease of 10.2 per cent or $34 million from Q3 2020, when net income was $334 million.

Combined ratio  

Intact reported a combined ratio of 91.3 per cent in the third quarter of 2021, compared with 87.1 per cent in Q3 2020. The ratio, which worsened by 4.2 points, is “driven by strength in all business segments despite an elevated 7.5 pts of catastrophe losses,” the company says.

These losses, which were “well above expectations and impacting all segments,” resulted in a $365 million charge to the insurer’s Q3 2021 results.

“Claims mostly reflected the impact of severe weather events including rain and hailstorms in Alberta, Ontario, and Atlantic Canada, flooding in the UK, and Hurricane Ida,” Intact explains, adding that this represents “a sharp increase” from the $24 million of catastrophe claims recorded in the third quarter of 2020.

Operating income  

Intact’s net operating income was $519 million in the third quarter of 2021, up from $411 million in Q3 2020. This result, equal to an increase of 26.3 per cent or $108 million, reflects “the contribution of RSA, strong growth in underwriting, investment and distribution earnings.”


Net underwriting income  

As a result, net underwriting income was $426 million in the third quarter of 2021, versus $369 million in Q3 2020. This represents an increase of 15.4 per cent or $57 million.


In the third quarter of 2021, this net income was augmented by the $72 million in net underwriting income that the company reported in its U.K. and International segment. This segment did not exist in Q3 2020; it was created following the RSA acquisition. Starting from the third quarter of 2021, it includes RSA’s operations in the U.K., Ireland, Continental Europe and the Middle East.

In Canada, net underwriting income was $356 million in Q3 2021, compared with $347 million in Q3 2020. It thus advanced by 2.6 per cent or $9 million. Starting from Q3 2021, this segment includes the results of RSA Canada.


In the U.S., net subscription income was $30 million. It thus rose by 42.9 per cent or $9 million since Q3 2020. Corporate and Other reported a net underwriting loss of $32 million compared with net underwriting income of $1 million in the third quarter of 2020, a decrease of $33 million.

Premiums pass the $5 billion mark 

Across all segments, Intact reported direct premiums written(DPW) of $5.4 billion in the third quarter of 2021, up from $3.3 billion in Q3 2020.

This growth of 66.9 per cent or $2.2 billion “mainly reflected the RSA acquisition which contributed 61 points of growth,” Intact says. The insurer also mentions that commercial lines organic growth was robust across all segments.”


In the third quarter of 2021, premium volume was bolstered by $1.3 billion of direct premiums written by the new U.K. and International segment. This result comprises $582 million in personal lines premiums and $682 million in commercial lines premiums.

In Canada, premiums totalled $3.6 billion in the third quarter of 2021, including the results of RSA Canada, compared with $2.7 billion in Q3 2020. This represents an increase of 30.8 per cent or $840 million. More specifically, Canadian premiums increased by:

  • 27.2 per cent or $330 million in personal auto insurance, to $1.5 billion. This growth “was bolstered by the RSA Acquisition, while we continue to operate in a muted rate environment. Excluding the impact of the RSA Acquisition, DPW grew by 1 per cent in the quarter,” Intact says;
  • 34.2 per cent or $246 million in personal property insurance, to $965 million. Again, this result was driven by the RSA acquisition. Excluding the impact of the RSA acquisition, “DPW growth was 5 per cent, driven by firm market conditions”;
  • 33.4 per cent or $264 million in commercial insurance, to $1.1 billion. The RSA acquisition was the primary driver of this growth. “Excluding this impact, DPW growth was strong at 8 per cent,” Intact says, “reflecting hard market conditions, as well as new business.”


In the United States, premiums totalled $619 million. They thus rose by 14.6 per cent or $79 million “driven by hard market conditions and strong new business in most lines” of commercial insurance.


Intact reports net investment income of $191 million in Q3 2021, compared with $143 million in Q3 2020. This represents an increase of 33.6 per cent or $48 million “driven by the growth in our investment portfolio following the RSA Acquisition. RSA contributed $49 million to net investment income in Q3 2021.

Excluding the impact from the RSA Acquisition, net investment income was in line for the quarter, Intact adds. It attributes the result mainly to “lower reinvestment yields and a weaker US dollar, partly offset by the benefit of higher invested assets.”