Canada’s largest property and casualty insurer records 10 per cent growth in personal auto premiums, while vehicle repair costs and catastrophe losses continue to influence underwriting performance.
Nov. 09, 2026 — Intact Financial Corporation reported 10 per cent growth in Canadian personal auto premiums in the third quarter of 2026, reflecting higher insurance rates and modest policy growth as the insurer continues to navigate changing market conditions and rising claims costs.
In its financial results for the three months ended Sept. 30, Intact reported personal auto direct premiums written (DPW) increased 10 per cent compared with the same period last year. Policy growth contributed two percentage points, indicating that most of the increase came from premium changes rather than additional customers.
The company’s Canadian personal auto combined ratio was 91.2 per cent, an improvement year over year. The ratio measures claims and operating expenses against premiums earned, with a figure below 100 per cent indicating an underwriting profit.
Intact said the result reflected its continued focus on profitable growth, despite challenging market conditions.
Across its Canadian operations, the insurer reported a combined ratio of 95.1 per cent, compared with 89.1 per cent in the third quarter of 2025. The deterioration was largely attributable to significant catastrophe losses in personal property insurance, including 33 percentage points of catastrophe losses in that business.
The results highlight the different pressures affecting insurance segments, with personal auto continuing to deliver strong underwriting performance while weather-related claims weighed on overall Canadian results.
At the corporate level, Intact reported net income of $562 million, down 35 per cent from $861 million a year earlier. Earnings per diluted share fell to $3.03 from $4.73, while net operating income per share was $3.63, down from $4.46 in the third quarter of 2025.
The company attributed the earnings decline primarily to higher-than-expected catastrophe losses and other investment-related factors. Its overall combined ratio increased to 94 per cent from 89.8 per cent a year earlier.
Repair costs remain an industry concern
For collision repair facilities, the results indicate the insurance market’s continued focus on underwriting discipline and claims management.
Increasing vehicle complexity, advanced driver assistance systems (ADAS), replacement parts costs, and specialized repair procedures continue to influence collision claim economics. These pressures matter as insurers and repair facilities balance repair quality, cycle times, and overall claim costs.
Intact’s third-quarter release did not provide a separate breakdown of collision repair costs or inflation in physical damage claims. However, the company’s personal auto results offer an important measure of the financial conditions in which Canadian collision repairers and insurers are operating.
Intact also reported 7% growth in total Canadian direct premiums written, reaching about $4.94 billion during the quarter.
Looking ahead, the company expects Canadian personal lines premium growth to remain in the high-single-digit range, incorporating the anticipated impact of Alberta’s upcoming auto insurance reforms. Commercial and specialty insurance premium growth is expected to remain in the low- to mid-single-digit range.
The Alberta Care-First auto insurance reforms, scheduled to take effect Jan. 1, 2027, will introduce a new approach to automobile injury claims and are expected to change the province’s insurance cost structure.
Intact’s results suggest that, despite continued pressure on the broader insurance business, Canadian personal auto remains a profitable segment. For collision repairers, the ongoing challenge will be navigating insurer expectations while ensuring that increasingly complex vehicle repairs are properly documented, performed, and compensated.
Intact Financial Corporation is Canada’s largest property and casualty insurer, with operations spanning insurance, distribution, restoration, and prevention. Its brands include Intact Insurance, belairdirect, and BrokerLink.