Canadian property and casualty insurer Definity Financial Corporation has estimated a negative impact on operating income of approximately $150 million, net of reinsurance recoveries, arising from catastrophe losses in July and August 2024.

The estimated losses account for approximately $0.97 per common share, net of taxes and reinsurance.

The reinsurance recoveries include fully utilising the $25 million available under Definity’s catastrophe aggregate treaty.

The assessment is based on up-to-date customer information and analysis of exposures. It is currently expected that the summer catastrophe season will remain active with probable additional loss events.

Definity expects Q3 2024 catastrophe losses will be materially above its original expectation, the firm will provide an update for the full quarter during the first half of October.

Notable events in July included the Jasper wildfire and severe rainstorms that led to flooding in Ontario, while August experienced flooding in Quebec, a significant hailstorm in Alberta and, most recently, significant rainstorms in Ontario.

Rowan Saunders, President and Chief Executive Officer, Definity commented: “This summer’s severe weather and wildfire activity have been devastating to several communities across Canada, demonstrating just how extensively our customers continue to be impacted by the effects of climate change.

“In these times, the immediate work of our catastrophe response teams to help our customers recover truly underscores our purpose at Definity – to help our clients and communities adapt and thrive.”

For 12 months ended June 30th, 2024, Definity Financial Corporation reported approximately $4.3 billion in gross written premiums and over $3 billion in equity attributable to common shareholders.

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