November 2, 2011 / 11:30 AM / 7 years ago

UPDATE 2-Intact Financial profit slips on takeover costs

* Net profit down 7 percent to C$101 million

* Operating profit up 23 percent to C$111 million

* Results helped by personal autos, hurt by weather

(Recasts from lead)

Nov 2 (Reuters) - Intact Financial Corp (IFC.TO), a Canadian home and auto insurer, said on Wednesday third quarter profit slipped 7 percent as it absorbed the costs of integrating a unit of France’s AXA insurance group.

Intact, which last month said it closed its C$2.6 billion ($2.57 billion) acquisition of the Canadian arm of the French insurance group, said third-quarter net income was C$101 million, down from C$109 million in the year-ago period.

The results included C$29 million in integration-related costs in the quarter, Intact said in a statement.

Net operating profit in the period rose 23 percent to C$111 million, or C$0.97 per share, from C$90 million, or C$0.79 per share, in the year ago quarter.

Toronto-based Intact said results were helped by underwriting performance in personal autos, but were hampered by severe weather disruptions.

“For the second consecutive quarter, severe weather conditions brought greater volatility to our results,” Chief Executive Charles Brindamour said. “In the quarter, Tropical Storm Irene and a number of wind and hailstorms impacted our performance.”

Intact, which launched the AXA takeover in May, plans to sell AXA Canada’s life insurance business to Quebec-based SSQ Life Insurance Co for C$300 million. Intact, a property and casualty insurer, had deemed the life insurance business as not being core to its operations.

Intact, now independent, started life as the Canadian insurance arm of Dutch financial group ING. It sells insurance under the Belair Direct and Grey Power banners.

$1=1.01 Canadian dollars Reporting by Pav Jordan, editing by Frank McGurty

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