By Chris Munro

April 21 - (The Insurer) - Canadian insurers are facing a bill of more than C$260 million ($188 million) from a severe storm and mid-winter thaw that struck parts of Ontario, Quebec and the country’s Atlantic region in February, Catastrophe Indices and Quantification Inc (CatIQ) believes.

The total comprises losses from two events, both of which CatIQ has classified as catastrophes as they are expected to generate losses above C$30 million.

According to CatIQ, a winter storm that struck Eastern Canada over February 15 to February 19 will cost insurers more than C$90 million.

As the Insurance Bureau of Canada $(IBC.AU)$ noted, the severe winter storm tracked south of the Great Lakes and into Atlantic Canada and brought heavy snowfall, strong wind gusts, ice and rain from southern Ontario to Newfoundland.

Just a few days later, that same region was affected by a snowstorm that resulted in heavy accumulation with little time to mitigate the impacts of the storms, the IBC said.

Consequently, there were many reports of structure collapses in Ontario and Quebec, along with other structural damage and power outages.

“Numerous municipalities in southern Ontario also declared significant weather events, including the City of Toronto. More than 600 collisions were reported on roads in Ontario,” said the IBC.

“Strong winds also caused power outages in Atlantic Canada, with approximately 6,000 customers without power on February 17 – most of these in Nova Scotia,” the IBC added.

The second CatIQ classified catastrophe event came later in February, a month that the IBC described as being “historically snowy."

Between February 24 and February 26, temperatures rapidly climbed well above freezing for the first time in weeks, prompting what the IBC described as the Ontario and Quebec February melt, an event that is expected to cost insurers more than C$160 million.

The IBC said the rapid increase in temperature, coupled with some rainfall, caused the snowpack in Ontario and Quebec to quickly melt.

“With the ground still frozen from the harsh winter, it was unable to absorb this melt, leading to flooding in low-lying areas, including many basements,” explained the IBC.

“Ice damming and water infiltration/basement leakage were the leading causes for claims,” the group said.

Other damage recorded included roofs collapsing due to snow load. A notable example was a six-story parking garage in Ottawa that partially collapsed, and which trapped around 50 vehicles.

CatIQ’s C$260 million-plus loss total does not include the expected impact of damage from the ice storm that impacted Ontario in late March. The IBC said an estimate from that event is expected to be released in the coming weeks.

Two of Canada’s largest insurers have already provided investors with updates on their expected catastrophe losses for Q1.

Intact Financial Corporation, Canada’s largest insurer, is facing an estimated C$244 million ($176 million) of catastrophe losses in Q1 2025, pre-tax and net of reinsurance.

And Definity Financial Corporation has estimated its first-quarter 2025 operating income will be affected by some C$50 million ($36 million) of catastrophe losses, net of reinsurance and taxes.