Severe flooding and mudslides that wrecked havoc on British Columbia residents last month will cut more than $20 million from Definity Financial Corp.’s earnings, according to an estimate released Friday.
The parent company of 150-year-old Economical Insurance said in a release it expects net income will be reduced by $21 million to $25 million, or $0.18 to $0.22 per share, as a result of the crisis in B.C.
“Our team is responding quickly to work on assessing and resolving claims,” said Definity President and Chief Executive Rowan Saunders in the release.
“We stand with affected residents and business owners in British Columbia during this difficult time, and our priority is to ensure that customer needs are met.”
The financial assessment is based on information received to date from customers, the company said, as well as analysis of exposures, and it assumes the recent severe weather in B.C. will not continue.
Waterloo, Ont.-based Definity raised about $1.6 billion in the largest Canadian initial public offering of the year last month.
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