01:46 PM EDT, 08/22/2024 (MT Newswires) -- The third quarter has been an active catastrophe season in Canada, writes National Bank. Toronto Floods t cost the insurance industry ~$940 million, while estimates for Jasper wildfires ($700 million), Calgary hailstorms ($1.2 billion), and Hurricane Debby hitting Montreal ($1 billion) remain preliminary, says analyst Jaeme Gloyn.

This will have a material negative impact on the third quarter earnings and book value for both Intact Financial ( IFCZF ) and Definity Financial ( DFYFF ), Gloyn adds. However, this could be a good buying opportunity, he notes. A year ago, on August 31, Intact Financial ( IFCZF ) pre-released estimated catastrophe losses for Q3-23 that impacted book value by ~2% relative to consensus estimates. Both Definity and Intact traded down by roughly the impact to book value, only to fully recover the following day. Definity followed with a similar release a few days later, which drove its stock lower for a short period.

A month after IFC's initial release, IFC traded about 2% higher while Definity traded flat. "We estimate the Q3-24 catastrophe loss estimate to have a ~3% impact on book value (both IFC and DFY), relative to consensus estimates." Bottom-line: Buy the Dip, advises Gloyn.

Price: 48.98, Change: -1.28, Percent Change: -2.55