Intact Financial

The UK&I segment’s combined ratio improved to 94.6% from 104% in Q4 as it focused on more profitable business in personal lines and sought rate increases for commercial lines.

The executive noted that Intact has exited C$500mn of business, with a CoR over 110% in the UK&I segment.

Overall, the company booked C$167mn of cat losses in Q4, or C$24mn above the C$143mn estimate that Intact reported on January 12.

Management said there are early signs that inflationary pressures – which have pushed severity in personal auto in recent months – are easing.

Intact financed the acquisition of the US builders risk portfolio through a $188mn term loan that was repaid before quarter-end, according to its Q3 statements.

The carrier’s operating direct written premium ticked down 0.1% to $5.4bn year-on-year, compared with a growth rate of 35% in Q2.

Chubb pushed its loss trend assumptions higher as it seeks to stay ahead of inflationary pressures.

COO Patrick Barbeau added that Intact saw part prices increase, with inflation in part costs in the high teens.

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The Canadian carrier booked $182mn cat losses that contributed 3.8 points in the CoR, reflecting the impact of weather conditions.

The Canadian insurer is staying ahead of inflationary pressures on loss costs by balancing rate increases with a one-time pandemic relief.

The insurer’s income benefitted from its acquisition of RSA’s Canadian, UK and international operations.