Alberta fires may be worse for Canadian insurance companies than Hurricane Katrina was for U.S.: ‘Devastation is unprecedented’

, Bitcoin News

Smoke fills the air as a police officer checks vehicles at a roadblock along Highway 63 leading into Fort McMurray on May 8, 2016 near Fort McMurray. Industrywide insured losses from the fires could reach $9 billion, according to reports from Bank of Montreal and others.

Intact Financial Corp. may post insured losses of as much as $1.1 billion (US$850 million) from the wildfires in Alberta, which could dent the Canadian economy harder than Hurricane Katrina hit the U.S.

Intact, Canada’s biggest property and casualty insurer, said the damage claims will lead to net losses of $130 million to $160 million, or as much as $1.20 a share, according to a company statement Monday. Jaeme Gloyn, an analyst with National Bank of Canada Financial, estimated the $1.1 billion figure based on the company’s per-share data. The Toronto-based insurer had net income of $147 million in the first quarter.

“The devastation brought on by the wildfires is unprecedented,” Intact Chief Executive Officer Charles Brindamoursaid in the statement. “The scope of the damage and destruction that we have observed in recent days is a reminder of the important role we play in getting our customers back on track.”

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One Comments

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