Canada's largest home and auto insurer reported a net loss of $8 million or seven cents per share in the quarter ended September 30. This was a drop from year-ago net profit of $57.3 million or 47 cents per share.

Analysts had expected earnings per share of 24 cents, according to estimates compiled by Thomson Reuters. Typically, such estimates strip out the impact of one-time financial items.

Net operating income for the quarter fell 80 per cent to $21.6 million or 18 cents per share.

Intact, which changed its name from ING Canada earlier this year, said it recognized a non-cash accounting loss of $30.4 million during the quarter which was related to the increase in value of its preferred stock portfolio.

The Toronto company employed 6,700 people at the end of 2008 and has been looking at acquisitions in a bid to grow in the Canadian market.

Intact said its positive automobile underwriting performance was offset by a high number of severe weather events over the summer that mainly affected property results.

"Despite the disappointing impact of these events, our underlying home insurance results continued to improve and our auto insurance business performed well both during the quarter and throughout 2009,'' said Charles Brindamour, Intact's president and chief executive officer.

"As the pricing environment shows increasing signs of firming up following a decline in underwriting margins, investment yields and excess capital across the industry, we are well positioned to take advantage of the underlying growth opportunities.''

The company added that its direct premiums written increased four per cent in the quarter to $1.1 million with gains in all areas of its business reflecting increases in premiums and number or risks insured.

The company's shares rose 27 cents to $35.70 in Wednesday trading on the Toronto Stock Exchange.