Intact Financial Corporation raised Canadian personal auto insurance premiums by 10% in Q3 2026 to combat rising vehicle repair costs, which the insurer expects to remain a persistent source of inflation despite upcoming Alberta insurance reforms.
- Intact increased Canadian personal auto premiums by 10% in Q3 2026 while achieving 2% unit growth
- Physical damage costs remain the primary driver of insurance inflation and are expected to persist after Alberta's Care-First reform launches January 1, 2027
- The company's combined ratio improved to 91.2% year-over-year, indicating underwriting profit despite higher catastrophe losses
- Intact forecasts mid-single-digit auto insurance premium growth over the next 12 months as the industry adapts to Alberta's new system
- Canadian auto insurance inflation remains in the mid-single-digit range, with bodily-injury liability costs increasing sharply in some provinces
Canadian personal auto premiums written by Intact Financial Corporation rose 10% during the third quarter of 2026 as the insurer continued to contend with rising vehicle-damage costs.
The Toronto-based property and casualty insurer reported 2% unit growth in its Canadian personal auto business. Its combined ratio improved year over year to 91.2%, despite higher catastrophe losses.
A combined ratio measures claims and operating expenses against premiums. A result below 100% indicates an underwriting profit.
Intact attributed the result to its pricing and risk-selection strategy. During the company’s Nov. 4 earnings call, Charles Brindamour, chief executive officer of Intact Financial Corporation, said Canadian auto insurance inflation remained in the mid-single-digit range.
Brindamour said physical damage costs remained a source of inflation and were not expected to disappear. Accident-benefit costs had remained comparatively stable, while bodily-injury liability costs had increased sharply in some provinces.
The distinction is important as Alberta prepares to introduce its Care-First auto insurance system on Jan. 1, 2027. The reform changes how people injured in collisions receive treatment, income replacement and other benefits. It also limits litigation in most cases.
The Alberta government has said the privately delivered system will provide injured people with earlier access to treatment and higher benefits while reducing reliance on court action.
Intact expects the reform to reduce the severity of new bodily-injury claims beginning Jan. 1. Brindamour said the company expects the resulting reduction in claims costs to be reflected in premiums during 2027.
The change does not remove pressure from vehicle repair costs. Brindamour said physical damage inflation remained in the mid-single digits and was unlikely to disappear following the Alberta reform.
Intact’s results release forecasts high-single-digit industry premium growth across personal insurance lines, including the expected effect of the Alberta changes. During the earnings call, management forecast mid-single-digit growth specifically for auto insurance over the following 12 months.
Across Intact’s Canadian operations, direct premiums written increased 7% to $4.9 billion during the quarter. The Canadian combined ratio rose to 95.1% from 89.1% a year earlier as severe weather increased property and commercial claims.
Companywide underwriting income fell 38% to $368 million. Net income declined 35% to $562 million, compared with $861 million during the third quarter of 2025.
“Our teams have again demonstrated their commitment to helping our customers recover quickly following the multiple weather events that took place this quarter,” Brindamour said.
Intact previously estimated that third-quarter catastrophe losses would total approximately $660 million before tax. Personal auto accounted for $52 million of that amount, while Canadian personal property and commercial insurance accounted for most of the losses.
Distribution income increased 16% to $171 million. The company attributed the increase to contributions from insurance brokerage BrokerLink and property-restoration business On Side Restoration.
