Intact Financial Estimates Wildfire Losses at $570M in Third Quarter

Intact Financial Corporation. (TSE: IFC), a leading property and casualty insurer in Canada, has released a report estimating that its catastrophe losses due to wildfires and other weather events in the third quarter will amount to $570 million.

According to the property insurer, the estimate is based on the current status of the wildfires, which are still burning in British Columbia and the Northwest Territories. The actual losses could be higher if the fires continue to burn or if new fires start.

The company says the losses amounts to about $2.40 per share further adding that it’s working with its clients to help them recover from wildfires. Intact Financial has already set up a dedicated claims team to process fast and efficiently.

The wildfires have been devastating for many communities in British Columbia and the Northwest Territories. The fires have destroyed homes, businesses, and infrastructure. They have also forced thousands of people to evacuate their homes.

Head of Canadian Insurance at DBRS Morningstar, Nadja Dreff, says as much as se expected to see higher estimate of damages from Intact Financial it doesn’t affect the company’s estimate for the overall insurance industry.

In recent weeks, thousands of residents have been displaced from British Columbia and the Northwest Territories resulting to the year going down on record as the worst wildfire season in Canada.

Earlier in August, DBRS Morningstar released an estimate indicating that the insured losses due to wildfire in the third quarter would be between $700 million and $1.5 billion for the Canadian insurance industry which they termed as manageable for insurers.