Intact Financial Corporation · TSX:IFC
Intact Financial — ING Canada — Scotia Capital Financials Summit 2008
10 slides from Intact Financial's conference presentation, Sep 10, 2008
Slide 1: Charles Brindamour, Chief Executive Officer
Charles Brindamour, Chief Executive Officer Scotia Capital Financials Summit – September 10, 2008
Slide 2: The leader in property & casualty insurance in Canada
The leader in property & casualty insurance in Canada • Largest P&C company in Canada with ROE performance of insurance subsidiaries compared to Canadian P&C insurance industry $4.1 billion in direct premiums written • Market leader in Ontario, Alberta, Quebec 40% and Nova Scotia 30% • Industry cons
Slide 3: Scale drives superior performance in personal lines
Scale drives superior performance in personal lines 2007 Automobile direct premiums written (DPW) – personal and commercial ($ millions) $2,500 $2,364 $2,000 $1,723 $1,457 $1,500 $1,144 $1,139 $1,000 $500 $0 IN G C a n a d a A v iv a C a n a d a T D M e lo c h e M o n n e x C o -o p e ra to rs S ta
Slide 4: Long-term industry outperformance in commercial
Long-term industry outperformance in commercial DPW and market share versus key competitors 2007 – ING Canada commercial non-auto Commercial property and liability combined ($ millions) net loss ratio gap versus industry (bps) 991 1000 900 Industry ING Canada 794 776 65% 800 755 720 59.4% 700 60% 56
Slide 5: Benefits of scale advantage
Benefits of scale advantage Superior pricing and underwriting Strategic claims and expense management • More sophisticated pricing • Strong in-house claims expertise segmentation • 95% of claims in 2007 handled by • Large proprietary experience internal claims personnel database • Preferred provider
Slide 6: Diverse business model maximizes growth
Diverse business model maximizes growth Personal lines – 2007 direct Our family of insurance brands premiums written by distribution channel ($ millions) Affiliated ING Insurance: provides distribution network, insurance products and $333.5, 11% services through a network of 1,800 independent Direct
Slide 7: Strategic capital management
Strategic capital management Share buyback up to July 31, 2008 Strong capital base allows us to pursue our (in millions) growth objectives while returning capital to 7.0 6.224 NCIB to buyback up our shareholders 6.0 to 6.2 million shares 5.0 As of Q2-2008 (in $ millions): 4.0 3.165 1 3.0 Excess capi
Slide 8: Future consolidation in a fragmented industry
Future consolidation in a fragmented industry P&C industry in Canada is highly Top 20 P&C insurers fragmented compared to other Market share (by DPW in 2007) Total = 80.6% financial services Current environment more likely to ING Canada Canadian public 10.9% (excl. ING) create opportunity as: 5.
Slide 9: Conclusion
Conclusion Largest property & casualty insurer in Canada • Consistent industry outperformer and consolidator • Scale advantage drives benefits that are difficult to emulate by new entrants or existing players • Disciplined pricing strategy in personal and commercial lines • Multi-channel distributio
Slide 10: Forward-looking statement disclaimer
Forward-looking statement disclaimer Certain of the statements contained in this presentation about our 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 stateme