On Friday, BMO Capital Markets maintained its Outperform rating on shares of Intact Financial Corporation (IFC:CN) (OTC: IFCZF), with a steady price target of Cdn$275.00. The affirmation comes despite the company's recent announcement of substantial catastrophe (CAT) losses for the third quarter of 2024.
Intact Financial disclosed CAT losses amounting to $1.216 billion for Q3 2024, a figure that exceeded the pre-announcement made on August 21, 2024, which estimated losses at $1.1 billion for the quarter to date.
The initial estimate of $357 million in CAT losses for Q3 2024 was significantly adjusted due to a series of catastrophic events, including torrential rains in Southern Ontario, wildfires in Jasper, a hailstorm in Calgary, and flooding in Quebec. The updated figure of $1.216 billion includes additional losses primarily from events in the UK, Ireland, and the U.S. that occurred in September.
The revised estimate of the operating earnings per share (EPS) for the third quarter was also affected by the updated CAT losses. The analyst from BMO Capital has lowered the Q3 2024 operating EPS estimate to ($0.77) from the previous ($0.27). This adjustment comes after the company today reported the increased CAT losses, which have risen significantly from the initial estimates.
Intact Financial's announcement provides a more comprehensive view of the impact of natural disasters on its financial performance for the quarter. The company's transparency in updating its CAT losses reflects the ongoing assessment of the damages incurred from a series of unfortunate events across different regions.
Despite the increased CAT losses, BMO Capital's analyst maintains confidence in Intact Financial's stock performance, reiterating the Outperform rating. The company's stock remains under the spotlight as it navigates through the financial implications of these catastrophic events.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.