September 30, 2013 / 9:49 PM / 5 years ago

Canada's Intact Financial raises catastrophe loss estimate

A firefighter stands close to the remains of a train wreckage in Lac Megantic July 8, 2013. REUTERS/Mathieu Belanger

TORONTO (Reuters) - Property and casualty insurer Intact Financial Corp (IFC.TO) said it will take catastrophe losses of C$199 million in the third quarter due mainly to a series of bad weather events and a fiery train derailment that devastated the town of Lac-Mégantic, Quebec in early July.

The after-tax estimate, which equates to C$1.51 a share, follows an initial catastrophic loss estimate of C$134 million in late July, which took into account losses from the train derailment and a July 8 rain storm that caused flooding in Toronto.

In a statement on Monday, Intact said the losses for the events in the late July estimate were largely unchanged, but that subsequent catastrophes added to the total.

“In aggregate, 10 events led to the catastrophe losses in the quarter, including hail storms in Alberta and rain storm in Ontario and Quebec,” the company said.

The expected losses build on a year that has seen higher-than-usual weather and disaster-related losses for Canadian insurers.

Intact’s second-quarter results were cut by C$105 million due to flooding in Alberta that shut down the oil industry capital of Calgary, displacing more than 100,000 people and cutting off power for days.

In Lac-Mégantic, 47 people were killed when a runaway train hauling 72 oil tanker cars derailed and exploded in the heart of the small town.

Intact will report results on November 6. The company’s shares fell 14 Canadian cents to C$61.78 on the Toronto Stock Exchange. The loss estimate was released after markets closed.

Reporting by Cameron French; Editing by Leslie Gevirtz

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