Definity erodes aggregate reinsurance treaty as Q3 catastrophe losses hit CAD122m

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Canadian property and casualty insurer, Definity Financial Corporation, has reported estimated catastrophe losses for Q3 2023 of CAD122 million, with events in the quarter leading to the full erosion of its catastrophe aggregate reinsurance treaty limit for the year.

definity-financial-logoThe company warns that the estimated cat losses will negatively impact operating income by approximately CAD122 million, net of reinsurance recoveries and inclusive of reinstatement premiums.

For Definity, the wildfires in British Columbia was the largest of 11 events reaching the firm’s cat loss threshold during the quarter.

Other events that contributed include severe wind and rainstorms leading to flooding in Ontario, Quebec, and Nova Scotia, and tornados in Ontario and Quebec, as well as hail events across the country.

The personal property business experienced the vast majority of the losses at around CAD104 million, personal auto recorded losses of CAD8 million, and commercial insurance CAD10 million.

The insurer says that these losses are largely in line with its September 5th, 2023, announcement regarding estimated cat losses in July and August.

Rowan Saunders, Definity’s President and Chief Executive Officer, commented, “We were able to deploy our dedicated catastrophe response teams in the field quickly and mobilize supporting claims and vendor resources from around the country to help our customers.

“Broker and customer feedback has been positive and our dedicated teams strive to consistently deliver exceptional service to ensure the timely rebuilding of impacted communities.”

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