Intact Financial Corporation · TSX:IFC
Intact Financial — Q1 2023 Earnings Presentation
16 slides from Intact Financial's earnings presentation, May 11, 2023
Slide 1: Q1-2023 Review of Performance
Make it Intact Intact Financial Corporation (TSX: IFC) Q1-2023 Review of Performance Thursday, May 11, 2023
Slide 2: Forward-looking statements
Forward-looking statements Certain of the statements included in this presentation about the Company’s current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statemen
Slide 3: Disclaimer
Disclaimer This presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall it or any part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitm
Slide 4: Charles Brindamour
Charles Brindamour Chief Executive Officer 4 Q1- 2023 Review of Performance
Slide 5: Key points & highlights
Key points & highlights $3.06 $2.06 +4% constant currency NOIPS 1 EPS Operating DPW 1 Growth on premium growth, higher investment yields and increased increase in operating earnings offset in +5% excluding strategic exits distribution income part by non-operating losses 91.9% 87.4% $77.72 Combined R
Slide 6: Q1-2023 Canadian results
Q1-2023 Canadian results Operating DPW growth1 Combined ratio (undiscounted)1 Industry outlook2 +5% 97.1% Industry premiums expected to grow in the mid-to-high single-digit Personal Auto up 3 points from the preceding quarter in line with our seasonally-adjusted sub-95 range expectation +6% 84.5% In
Slide 7: Q1-2023 UK&I and US results
Q1-2023 UK&I and US results Operating DPW growth Combined ratio (undiscounted)1 Industry outlook2 (constant currency)1 (11)% 107.3% UK property: rate increases expected over time Ireland property: low single-digit rate UK&I Personal reflecting the exit from the UK 4-point adverse impact from the 202
Slide 8: Strategic highlights
Strategic highlights RSA integration ▪ Policy conversion in the broker channel, outside of specialty lines and Johnson, has been completed ▪ In direct distribution, 50% of Johnson’s retail policies have converted to belairdirect thus far ▪ Conversion of Johnson’s affinity policies will begin in Q4-2
Slide 9: Louis Marcotte
Louis Marcotte Executive Vice President & Chief Financial Officer 9 Q1-2023 Review of Performance
Slide 10: Q1-2023 Underwriting review
Q1-2023 Underwriting review 1 Combined ratio of 87.4% (91.9% undiscounted) 88.9% 87.4% Canada (discounted) (discounted) Combined ratio2 was solid at 91.7%, reflecting strong performance in personal property and commercial lines, driven by the benefit of our rate increases and favourable 32.9% 34.0%
Slide 11: Q1-2023 Underwriting review: Canada lines
Q1-2023 Underwriting review 1,2 Personal Auto Personal Property Commercial Lines 97.1% 89.9% 90.8% 93.7% 88.3% 26.0% 84.5% 24.9% 36.6% 38.1% 0.0% 34.7% 0.0% 34.3% 1.7% 6.1% 5.6% 3.4% 73.9% 78.4% 62.7% 50.2% 45.0% 53.8% 1.8% (5.1)% (7.3)% (2.7)% (6.7)% (11.1)% Q1-22 Q1-23 Q1-22 Q1-23 Q1-22 Q1-23 Rest
Slide 12: Q1-2023 Underwriting review: UK&I and US
Q1-2023 Underwriting review 1,2 UK&I Personal Lines UK&I Commercial Lines US Commercial 90.3% 88.2% 110.5% 107.3% 86.8% 89.1% 35.9% 35.5% 36.7% 38.4% 38.7% 40.0% 14.0% 0.0% 8.2% 0.6% 0.0% 2.1% 59.0% 66.7% 53.8% 57.6% 50.2% 49.7% 1.6% 2.2% (7.2)% (6.7)% (2.1)% (2.7)% Q1-22 Q1-23 Q1-22 Q1-23 Q1-22 Q1-
Slide 13: RSA integration update
RSA integration update Value Creation ▪ On track to realize at least $350 million of pre-tax annual run-rate synergies within 3 years ▪ Estimated annual run-rate of $285 million as at March 31, 2023 ▪ RSA contributed 16% NOIPS1 accretion over the last 12 months ▪ On track to reach approximately 20%
Slide 14: Proven and consistent capital management strategy
Proven and consistent capital management strategy CAPITAL LOW BOOK VALUE PER SHARE SENSITIVITY TO CAPITAL DEPLOYMENT MARKETS VOLATILITY2 -2% -2% per 10% decrease in common share per 100 bps increase in interest rates prices3 MANAGE VOLATILITY ADJUSTED DEBT-TO-TOTAL -0.4% -3% CAPITAL RATIO1 per 5% de
Slide 15: Q&A
Q&A Q&A
Slide 16: Contact us
Contact us Investor Inquiries Intact Financial Corporation 700 University Avenue Toronto, ON M5G 0A1 ir@intact.net www.intactfc.com Investor Relations Shubha Khan Vice President, Investor Relations 1 (416) 341-1464 ext. 41004 shubha.khan@intact.net Media Inquiries David Barrett Director, Media, Soci