Home and auto insurance premiums are set to rise across the industry, ING Canada warned yesterday while reporting a $36.3-million first-quarter loss blamed on a one-time charge in its investing operations.
“The increase in claims costs in auto insurance in Ontario, the uncertainty associated with the minor injury cap in Alberta as well as the water-related damages in home insurance are leading to premium increases in personal insurance,” the country’s largest property and casualty insurance provider stated.
“In business insurance, current market indications suggest that the pricing environment may begin to firm up.”
ING Canada — newly independent of former parent ING Group of Holland and changing its name to Intact Financial Corp. — also noted that “lower investment yield and lower capital levels could also contribute to increased premiums during the year.”
The $36.3-million net loss, worth 30 cents per share, compared with a year-ago profit of $23 million, 19 cents per share.
