TORONTO (Reuters) - Intact Financial Corp (IFC.TO) said on Wednesday its quarterly net profit fell 5 percent as higher claims activity and lower investment gains more than offset a sharp rise in premiums.
However, the company’s shares rose 3.1 percent as the result topped analysts’ estimates.
The Canadian property and casualty insurer earned C$96 million ($96.50 million), or 70 Canadian cents a share, in the third quarter that ended September 30. That was down from a profit of C$101 million, or 87 Canadian cents a share, a year earlier.
On an operating basis, the company earned 89 Canadian cents a share, well ahead of the profit of 56 Canadian cents a share expected by analysts, according to Thomson Reuters I/B/E/S.
Toronto-based Intact, Canada’s largest P&C insurer, is the former Canadian insurance arm of Dutch financial group ING Groep ING.AS. Its main brands are Belair Direct and Grey Power.
Direct premiums written surged 44 percent to C$1.8 billion, helped by last year’s acquisition of the Canadian arm of AXA Group (AXAF.PA) and its C$530 million acquisition of Jevco Insurance, which closed late in the third quarter.
The surge in net premiums was partially offset by a jump in net claims of 49 percent to C$1.1 billion due to a series of storms in Alberta, Ontario and Quebec, the company said.
Net investment gains fell to C$16 million from C$78 million.
The company’s shares, which have climbed 6.7 percent so far this year, were up C$1.86 at C$62.45 on the Toronto Stock Exchange.
$1 = 0.9949 Canadian dollars Reporting By Cameron French; Editing by Maureen Bavdek