Definity Financial Corporation is following other insurers who are warning their shareholders and stakeholders about the likely financial impact recent catastrophes in Canada will have on their company results.
“Definity estimates a negative impact on operating income for July and August 2023 of approximately $120-million net of reinsurance recoveries and inclusive of reinstatement premiums, or approximately $0.76 per common share, net of taxes,” the company said in a statement September 5.
The statement echoes another made in late August by Intact Financial Corporation. In that statement, the insurer said it estimates catastrophe losses incurred in Q3-2023 from wildfires and other weather events amount are approximately $570-million pre-tax, or $2.40 per share.
In Definity’s case, the company’s personal property business has reportedly experienced the vast majority of the losses. “Although the British Columbia wildfires were the single largest contributor, at least 10 events reached Definity’s catastrophe loss threshold in those two months,” the insurer says about July and August 2023. (The company considers a loss to be catastrophic if gross losses exceed $2-million and generally include more than 100 claims, or if a single claim exceeds $3-million.) “Given that the Q3 2023 catastrophe losses will be materially above our original expectation, we expect to provide an update for the full quarter during the first half of October.”
Related:
Intact publishes estimated catastrophe losses anticipated in Q3
