August 5, 2010 / 10:44 AM / 7 years ago

UPDATE 1-Intact Financial Q2 profit rises; below forecast

* Q2 EPS C$1.04 vs C$0.62 last year; below mkt forecast

* Net operating income up 28 pct

* Revenue up 5 percent, ahead of market forecast

Aug 5 (Reuters) - Canadian home and auto insurer Intact Financial Corp (IFC.TO) posted higher quarterly results as it improved its operating and investment performance.

April-June net income rose to C$120.2 million, or C$1.04 a share, from C$74.2 million, or 62 Canadian cents a share, a year earlier.

Net operating income rose 28 percent to C$118.6 million, or C$1.03 a share. Revenue increased 5.4 percent to C$1.3 billion.

Analysts, on average, had predicted earnings of $1.09 a share on revenue of C$1.2 billion, according to Thomson Reuters I/B/E/S.

“Personal property premiums continue to increase across the industry to reflect the impact of more frequent or severe storms, as well as water-related losses which are the leading cause of home insurance claims,” the company said in a statement.

Pricing conditions in commercial insurance continue to remain soft, Intact said, adding that over the last nine months it has seen pricing begin to firm in segments where it operates.

The company added that it expects conditions to gradually improve across the country.

Shares of the company closed at C$46.23 Wednesday on the Toronto Stock Exchange, a little below the stock’s 3-year high struck earlier this week. (Reporting by Isheeta Sanghi in Bangalore, Editing by Ian Geoghegan) ((isheeta.sanghi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: isheeta.sanghi.thomsonreuters.com@reuters.net))

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