Property/Casualty & Reinsurance Underwriting

Definity Financial reported that severe weather-related catastrophes, including floods and wildfires across several Canadian provinces, reduced its third-quarter 2026 underwriting income by about CA$190 million after reinsurance recoveries. The CA$190,000,000 hit to underwriting income sharpens investor focus on whether the Canada-focused property and casualty insurer's risk management and pricing can keep pace with rising climate-related losses. Despite the catastrophe impact, the company recently affirmed its quarterly dividend at CA$0.215 per share, signaling that management has not yet adjusted its capital return plans. Definity's investment narrative projects CA$7.7 billion in revenue and CA$712.7 million in earnings by 2029, with two fair value estimates from the Simply Wall St Community spanning roughly CA$87.64 to CA$106.30.

AM Best has revised the outlook to negative from stable for the Long Term Issuer Credit Rating of Queen City Assurance, Inc. and Vine Court Assurance Incorporated, both domiciled in Burlington, Vermont, and collectively known as Queen City Assurance Group, while affirming the group's Financial Strength Rating of A (Excellent) and Long Term ICR of "a+" (Excellent). The outlook on the Financial Strength Rating remains stable. AM Best said the negative outlooks reflect concerns about deterioration in the group's underwriting performance in recent years, which if sustained could pressure operating performance so that it no longer supports the current assessment. Underwriting results weakened in 2024 due to an uncharacteristically high level of property losses and deteriorated further in 2025, driven by elevated casualty losses including adverse reserve development and pressure from the medical expense containment program, though overall earnings remained positive on solid investment income. The ratings reflect balance sheet strength assessed as strongest, strong operating performance, a neutral business profile and appropriate enterprise risk management, and they also consider the financial flexibility provided by the group's publicly traded parent, The Kroger Co., one of the largest companies in the food retail industry.

The Thai General Insurance Association confirmed that the national disaster insurance scheme will expedite initial compensation payments to affected citizens. For floods, an initial payment of 10,000 baht will be made, while for windstorms and earthquakes the initial payment is 5,000 baht. Actual damage will then be assessed and the remainder paid out in full, up to a maximum coverage limit of 100,000 baht. The first 10,000 baht already paid will not be reclaimed even if actual damage is less than that amount. The policy also covers cases where a home is surrounded by water continuously for seven days or more, including condominium units with their own house number, but payment is made only to the legal owner or an authorized representative, and coverage applies only to residential structures that are permanently occupied. It excludes belongings, furniture, business premises, factories, schools, temples, and abandoned homes. For life coverage, the government provides insurance to Thai nationals of 2 million baht in the event of death from a disaster, and 200,000 baht for total permanent disability. The policy takes effect from October 1, 2026, with total coverage of 75 billion baht. If payouts reach that limit, the government will be responsible for any amount exceeding it.

Chuchat Pramulphon, Secretary-General of the Office of the Insurance Commission, or OIC, has estimated preliminary damage from nationwide flooding at approximately 11 billion baht, covering damage to insured vehicles, homes, and real estate. The figure reflects only claims already filed across the country, including in the latest affected areas of Chiang Mai and Lamphun, where more than 30,000 vehicle insurance claims have been reported. He expects the total estimate will not rise much further if no severe flooding recurs. Chuchat confirmed that Thailand's insurance business still has strong liquidity and capital funds, with total investment assets of nearly 4.9 trillion baht, split into roughly 4.55 trillion baht in life insurance and the remainder in non-life insurance. Stress test results have not found any company severely affected enough to cause concern, because most companies have reinsurance arrangements with overseas reinsurers, allowing them to spread risk appropriately. Damage in the industrial sector is not as high as during the major floods of 2011, since factories and industrial estates now have better flood prevention measures, though some sites may need more time to survey because floodwater remains deep. The OIC stressed that the most important thing now is the speed of claim payouts and risk management, and urged all insurance companies to expedite claim payments to the public and businesses as quickly as possible.

Several life and non-life insurance companies have gradually announced relief measures for customers affected by flooding in various provinces across the country, including relaxed premium payment terms, waivers of interest and fees, and expedited claim payouts. Allianz Ayudhya Assurance introduced relief measures for life, health, and personal accident policies whose premiums fall due between September 1 and December 31, 2026, allowing lapsed policies to be renewed or reinstated within six months, along with waivers of interest and medical examinations. Thai Life Insurance extended its premium payment grace period to 60 days for policyholders whose premiums are due between September 20 and December 31, 2026, while Krungthai-AXA Life Insurance extended its premium payment grace period from 31 days to 91 days for policies with premiums due in the same period. Sara Lamsam, Chief Executive Officer of Muang Thai Life Assurance, said the company had extended its premium payment grace period by another 60 days, along with waivers of interest and medical examinations for policies due between September 20 and December 31, 2026. On the non-life side, Indara Insurance introduced relief measures for customers across all types of insurance, including towing and vehicle recovery services, a 60-day extension of the premium payment grace period for policies due between September 24 and October 31, 2026, and expedited preliminary claim payouts within seven business days, capped at 20,000 baht. Allianz Ayudhya General Insurance, meanwhile, is preparing its claims operations so that customers can submit documents online for auto, home, and property insurance, with claims payable within three days if the documents are complete.

Intact Financial Corporation announced an estimated $660 million in pre-tax catastrophe losses for the third quarter of 2026, net of reinsurance, equal to $2.76 per diluted share after tax. The total breaks down into $615 million in Canada, $38 million in the UK and Ireland, and $7 million in the US, while by line of business it comprises $390 million in Personal property, $173 million in Commercial lines, and $52 million in Personal auto. Chief Executive Officer Charles Brindamour said the severe weather events of recent months brought the company's teams, supply chain and restoration network together to help customers recover, and that at an industry level the events reinforce firm market conditions. Chief Financial Officer Ken Anderson said catastrophe losses over the past 12 months totaled $1.29 billion, modestly above the company's annual guidance of $1.20 billion, while the Intact platform continues to demonstrate resilience and strength. The losses in the most impacted lines, Personal property and Commercial lines in Canada, were driven by severe weather including storms causing flooding, water and wind damage across several regions, as well as wildfires in British Columbia.

Definity Financial Corporation announced that catastrophe losses in the third quarter of 2026 will reduce underwriting income by approximately $190 million net of reinsurance recoveries, or $1.15 per common share net of taxes and reinsurance. The estimate updates and extends the company's September 3, 2026 preliminary estimate of losses from July and August events. Within the $190 million total, personal property accounts for $136 million, commercial insurance for $37 million, and personal auto for $17 million. The losses stem from severe rainstorms and flooding in Ontario and Alberta and wildfires in British Columbia in July and August, plus a large storm system that brought damaging winds, hail and flooding to southern Ontario in early September. President and CEO Rowan Saunders said severe weather-related events continued into September and impacted communities across the country, and that Definity remains focused on supporting customers through its catastrophe response capabilities.

Senators Elizabeth Warren and Josh Hawley are seeking answers from major home and auto insurers after analysis showed consumers increasingly face claims that close without any payment. The letters ask State Farm, Allstate Corp. and other insurers to disclose closed-claim data, including denials, and to explain whether employee, contractor or adjuster compensation depends on claim decisions or payouts, according to the Wall Street Journal. The senators said the findings raise serious questions about whether consumers can trust their insurance companies to honor their obligations, and criticized increasingly aggressive claims-handling practices, including tactics to delay payments, as insurers chase stronger profits. The inquiry expands Warren's broader scrutiny of concentrated influence in insurance and healthcare; in August she criticized vertical integration involving UnitedHealth Group Inc. U.S. property and casualty insurers posted $31.2 billion in underwriting profits in the first half of this year, nearly triple the $10.9 billion earned a year earlier, according to a report by AM Best, which credited higher premiums and lower claim payouts. State Farm and Allstate Corp. did not immediately respond to Benzinga's request for comments.

The Office of the Insurance Commission, or OIC, has issued guidelines for claiming compensation for damage in flood situations. Secretary-General Chuchat Pramulphon emphasized that the safety of life and property must come first, and that people should not risk entering flooded areas merely to take photos or collect evidence. For cars flooded by water, Type 1 auto insurance covers flood damage, while Type 2+ and Type 3+ policies require checking whether additional flood coverage is included. The OIC has set guidelines for assessing damage to combustion-engine vehicles according to five water levels: Level A, water reaching the car floor mats, with repair costs of approximately 8,000 to 10,000 baht; Level B, water reaching the seats, with repair costs of approximately 15,000 to 20,000 baht; Level C, water reaching the lower part of the console, with repair costs of approximately 25,000 to 30,000 baht; Level D, water reaching the upper part of the console, with repair costs of 30,000 baht or more; and Level E, the car fully submerged, which should be considered a total loss. For electric vehicles, or EVs, the damage to the battery must be considered together with damage to the vehicle itself and the specifications of each brand and model. For homes, residences, buildings, or damaged property, policyholders should check their policies to see whether they include natural disaster or flood coverage and what the coverage limit is, take photos or videos showing both wide shots and details, and prepare a list of damaged property before notifying the insurance company. The OIC has also set up a central hub of insurance claim channels for all companies in one place, which can be checked via the website www.oic.or.th and the LINE Official Account @OICCONNECT, and it has opened the 1186 hotline around the clock.

The Office of Insurance Commission, or OIC, has ordered insurance companies to assess their catastrophe reserves as close to reality as possible and to set aside full reserves, in order to prevent liquidity strain and to reflect the overall damage picture across the system. This follows the second joint meeting with the insurance sector, held on 2 October 2026, to prepare for the wave of claims expected to flood in simultaneously once the floods recede. At the first meeting on 28 December 2026, damage data was still scattered and incomplete. Under the data and liquidity response guidelines, insurance companies are required to clearly separate repair status into three stages: awaiting entry to repair, under repair, and repair completed, in order to prevent artificial status problems. On staffing and resource management, the OIC recommends allocating loss surveyors and damage assessors appropriately, and grouping damage levels for internal combustion engine vehicles into five levels, A through E, according to the level of water reaching the vehicle. At level A, water reaches the vehicle's floor carpet, with repair costs estimated at approximately 8,000 to 10,000 baht. At level B, water reaches the seats, with repair costs estimated at approximately 15,000 to 20,000 baht. At level C, water reaches the lower part of the console, with repair costs estimated at approximately 25,000 to 30,000 baht. At level D, water reaches the upper part of the console, with repair costs of 30,000 baht or more. At level E, the car is fully submerged and should be considered a total loss, with claims paid according to the sum insured. For electric vehicles, a combined assessment structure is set, requiring a joint assessment process covering damage to the vehicle structure and the battery pack, as well as reference to specific technical specifications from each manufacturer. A framework is also set for paying compensation within seven days in cases where damage is clearly proven, and the documentation process is unlocked for total loss cases still under installment obligations to financial institutions. On building strategic partnerships, the OIC will act as a central hub coordinating with banks and financial institutions in cases of total loss vehicles still under finance obligations, as well as providing networks of forklifts and tow trucks and opening access to cordoned-off areas. Chuchat Pramulphon, Secretary-General of the OIC, stressed key principles for policyholders: safety first, notify the company first, and collect as much evidence as possible. Absolutely do not start a flooded car. Photograph or video the water marks and the vehicle once it is safe, then notify the insurance company immediately. Meanwhile, the public can use the central claims channel for all insurance companies via the website www.oic.or.th and the LINE Official Account @OICCONNECT, as well as the OIC hotline 1186 around the clock until 5 October 2026.

CNA Financial Corporation grew second-quarter 2026 P&C net written premiums 4% year over year even as renewal premium change slowed to 2% and renewal rate increases stayed flat, with new business climbing 11% to a record $718 million and retention holding at 83%. Specialty and Commercial net written premiums each rose 5% in the quarter, and management said it continues to write accounts at appropriate prices, terms and conditions while pulling back where risk-adjusted returns are less attractive. Profitability nonetheless came under pressure: the P&C underlying combined ratio deteriorated to 94.2% from 91.7%, the underlying loss ratio rose to 64.1%, and the Commercial underlying combined ratio increased to 92.8% from 90.6%. Net investment income rose to $701 million in the quarter. Among peers, Travelers Companies posted a 5% increase in second-quarter 2026 Business Insurance net written premiums excluding the Canadian divestiture, with renewal premium change of 4.8%, while Chubb said soft conditions persisted in large-account and E&S property and spread to certain casualty and financial lines, pushing North America Commercial P&C net written premiums down 2.3% even as net written premiums excluding large-account and E&S property rose 4.1%, Middle Market and Small Commercial grew 8.9%, and Overseas General net written premiums increased 10.2%. The Zacks Consensus Estimate for CNA's third-quarter 2026 EPS moved down 1.6% over the past 60 days, while the full-year 2026 EPS estimate moved up 2.4%, and the stock carries a Zacks Rank #3 (Hold).