Intact Financial Slips as Alberta Flooding Mounts: Toronto MoverKatia Dmitrieva
Intact Financial Corp., Canada’s second-largest personal and casualty insurer by market value, fell in Toronto trading as analysts predicted higher catastrophe costs from flooding in Alberta.
Intact Financial slipped 1.5 percent to close at C$57.52, the lowest since Jan. 30, 2012. Shares of the Toronto-based insurer have slid 11 percent this year, compared with the 0.4 percent decline of the 46-company Standard & Poor’s/TSX Financials Index.
Recent rainstorms and flooding in Alberta “will likely be a significant insured event for the industry,” Andre-Philippe Hardy, an analyst at RBC Capital Markets, said in a note today to clients. “It is likely to lead to high catastrophe costs in the second quarter of 2013.”
The flooding, the worst in the province’s history, has shut down Calgary and forced the evacuation of thousands of residents. Intact Financial is the largest insurer in Alberta, according to company filings.
Damage is estimated at between C$3 billion ($2.8 billion) to C$5 billion, Tom MacKinnon, an analyst at BMO Capital Markets, wrote in a note to clients today. Losses after insurance will be in range of C$2.25 billion to C$3.75 billion, he said.
Sandra Nunes, a spokeswoman for the insurer, declined to comment.