Intact’s preliminary estimate for impact of summer storms up to $120 million

The recent severe hailstorm that hit Airdrie, Alberta accounts for the majority of Intact Financial Corporation’s preliminary estimate of $100 million to $120 million in pre-tax financial impact of catastrophe events in July and so far in August.

The Airdrie storm on August 7 was the most significant event to date this summer, accounting for approximately 70% of the damages from the catastrophe events, notes a statement issued Wednesday evening by Intact, the largest provider of property and casualty insurance in Canada.

The preliminary estimate of $100 million to $120 million equates to $0.56 to $0.67 per share after tax, the statement adds.

In a bid to help get people back on track, “within hours of the storm, we had field adjusters and contractors out in the community and were setting up two temporary car repair facilities in the area,” Jennie Moushos, senior vice president of Intact Insurance for the Western Region, says in the statement.

“As an organization, we continue our efforts to ensure the sustainability of the protection we offer Canadians and encourage them to better adapt to the new climate reality,” Moushos adds.

Last week, the Insurance Bureau of Canada (IBC) estimated insured damage from summer flooding in the Prairies at $60 million. The damage was the result of heavy rains and high winds across southern Saskatchewan and Manitoba in late June and July, reports IBC, citing figures from Property Claim Services.

States of emergency were called in both provinces, with hundreds of residents having to leave their homes and dozens of roads becoming impassable as a result of flooding, notes an IBC statement.

“People were forced from their homes, roads were flooded and crops were destroyed. These storms are another example of the toll severe weather events are taking on Canadian families and communities,” Bill Adams, IBC vice president, Western and Pacific, says in the statement.

“The insurance industry continues to spread the word about the need to update infrastructure, to engage consumers on how to protect themselves and their properties against severe weather,” Adams says.

In Manitoba, the provincial finance ministry issued a special warrant in mid-August to allow extra spending – an additional $100 million – to provide additional authority to finance emergency expenditures for the 2014-2015 fiscal year related to recent flooding. Heavy rain in early July caused widespread flooding in the province.

The special warrant provides an additional $100 million for immediate emergency expenditure requirements resulting from the 2014 summer flood, notes a statement from the provincial government.