WATERLOO, ON, July 30, 2013 /CNW/ - Economical Insurance today released catastrophe loss estimates from the storms and floods in
Southern Alberta in June and the Greater Toronto Area in July.
Economical estimates that its loss related to the Southern
Alberta floods in June will amount to $30 million after taking into
account expected reinsurance recoveries. The company will record the
loss estimate in its 2013 second quarter results which are scheduled
for release on August 7, 2013.
Economical also estimates that the loss incurred from the July flooding
in the Greater Toronto Area will be $30 million net of reinsurance.
Economical will record the estimated losses from the Greater Toronto
Area flooding in its 2013 third quarter results.
In terms of total insured losses, gross of any reinsurance recovery,
Economical estimates that each event will likely fall within a range of
$45 to $50 million. Economical Insurance's property catastrophe
reinsurance coverage commences once losses reach $30 million on an
individual loss event, after reflecting any other relevant recoveries.
"The damage wrought by these precedent-setting incidents demonstrates
that, as a country, we are facing the increasing impact of climate
change," said Karen Gavan, president and CEO. "We were on the ground
immediately when our policyholders needed us most to help them restore
their lives and rebuild their businesses in the aftermath of the
There is considerable uncertainty associated with any loss estimate,
which in this instance is further complicated by the inherent
uncertainties related to flood events. Economical's loss estimates are
based on claims reported to date, some of which are not fully resolved
and there may still be some claims not yet reported to the company.
The ultimate loss, therefore, may differ from the current estimate.
Forward looking statements
The statements in this press release regarding our estimated catastrophe
losses, and the timing and content of our unreleased financial results
are forward-looking statements. In addition, the words "may", "will",
"would", "should", "could", "expects", "plans", "intends", "trends",
"indications", "anticipates", "believes", "estimates", "predicts",
"likely" or "potential" or the negative or other variations of these
words or other similar or comparable words or phrases, are intended to
identify forward-looking statements.
Forward-looking statements are based on estimates and assumptions made
by management based on management's experience and perception of
historical trends, current conditions and expected future developments,
as well as other factors that management believes are appropriate in
the circumstances. Many factors could cause Economical's actual
results, performance or achievements or future events or developments
to differ materially from those expressed or implied by the
forward-looking statements, including, without limitation, the
following factors: Economical's ability to accurately assess the risks
associated with the insurance policies that it writes; management's
ability to accurately predict future claims frequency or severity;
litigation and regulatory actions; and general economic, financial and
All of the forward-looking statements included in this press release are
qualified by these cautionary statements. These factors are not
intended to represent a complete list of the factors that could impact
Economical, however, these factors should be considered carefully, and
readers should not place undue reliance on forward-looking statements
we make. We are under no obligation and have no intention to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.
About Economical Insurance
Founded in 1871, Economical Insurance is one of Canada's leading
property and casualty insurers, with more than $1.8 billion in premium
volume and more than $4.7 billion in assets as at March 31, 2013. In
2010, Economical announced its decision to become the first
federally-regulated mutual property and casualty insurance company to
demutualize. Economical Insurance conducts business under the following
brands: Economical Insurance, Economical, Western General, Economical
Select, Perth Insurance, Family Insurance Solutions, Federation
Insurance and Economical Financial.
SOURCE: Economical Insurance
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