Source: The Canadian Press

Intact Financial Corp. (TSX:IFC) earned $119.7 million in the first quarter on a stronger operating performance and equity investments, reversing last year’s $36.3 million loss.

The Toronto-based insurance company earned $1.01 per share for the period ended March 31, compared to a 30-cent loss in the same period in 2009.

Direct premiums written (excluding pools) increased 5.2% to $914.3 million, from $868.8 million, continuing the trend of accelerating growth that began in early 2009.

Intact said improved underwriting performance increased net operating income by 62.5% to $112.3 million, or $0.94 per share. It was driven by a strong performance across all lines of business.

Chief executive Charles Brindamour said mild weather helped to produce one of the company’s best underwriting performances in three years, especially in home insurance.

However, the unpredictability of weather patterns and the increasing costs of medical claims in Ontario because of pending Ontario auto insurance reforms may impact the industry’s short-term performance, he added.

Intact’s board declared a 34 cents quarterly dividend, payable June 30.

Intact Financial is Canada’s largest provider of property and casualty insurance with more than $4 billion in premiums. Its 7,000 employees operate under the Intact Insurance, Novex Group Insurance, Belairdirect and Grey Power brands.

IE