Intact Financial Corporation · TSX:IFC
Intact Financial — Merger or Acquisition (May 2012)
10 slides from Intact Financial's merger presentation, May 2, 2012
Slide 1: IFC's acquisition of JEVCO: Continuing our journey towards building a world-class P&C insurer
Intact Financial Corporation (TSX: IFC) IFC’s acquisition of JEVCO: Continuing our journey towards building a world-class P&C insurer May 2, 2012
Slide 2: Forward looking statements and disclaimer
Forward looking statements and disclaimer Certain of the statements included in this Presentation about IFC’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 s
Slide 3: Forward looking statements and disclaimer
Forward looking statements and 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 inducem
Slide 4: IFC's acquisition of JEVCO: Continuing our journey towards building a world-class P&C insurer
IFC’s acquisition of JEVCO: Continuing our journey towards building a world-class P&C insurer Strategic Fit Financially Compelling • Strengthens offer for brokers and customers • IRR1 estimated above 20% • Expands existing product offering: • Book value per share accretion estimated at 2.6% • Recrea
Slide 5: Leading position in Canadian P&C insurance
Leading position in Canadian P&C insurance Top 10 Canadian P&C Insurance Companies by 2011 Direct Premiums Written ($ billions) 7.0 3.4 2.6 2.5 2.4 2.4 1.9 1.8 1.7 1.3 0.3 PF Intact + Aviva RSA TD Co- Wawanesa State Farm Desjardins Economical Northbridge JEVCO AXA + Insurance operators JEVCO Rank 1
Slide 6: Broadening our offer to brokers and customers
Broadening our offer to brokers and customers − JEVCO Insurance Company is a leading provider of specialty and niche insurance products for individuals and businesses across Canada − Insurance products are distributed through a network of independent insurance brokers; JEVCO had approximately $350 m
Slide 7: A financially compelling transaction
A financially compelling transaction Purchase Price $530 million cash consideration1 Key Components Specialty lines | Recreational vehicles | Non-standard auto Purchase Metrics P/BV2 = 1.3x | P/E3 = 13.2x Transaction Economics Estimated IRR above 20%4 | Accretive to BVPS by 2.6% Financing Excess cap
Slide 8: Strong financial position maintained
Strong financial position maintained Ultimate Sources of Funding* IFC excess capital + debt $205 million Equity proceeds $225 million JEVCO excess capital $100 million $530 million * Represents funding structure following the close of the acquisition. Debt-to-total-capital ratio estimated to remain
Slide 9: Conclusion
Conclusion Strong strategic fit • Strengthens offer for brokers and customers • Expands existing product offering into complementary lines • Strengthens commercial and specialty lines capabilities Opportunity to acquire a leading specialty and niche insurer in a financially compelling manner • Estim
Slide 10: Investor Relations contact information
Investor Relations contact information Dennis Westfall, CFA Director, Investor Relations Phone: 416.341.1464 ext 45122 Cell: 416.797.7828 Email: Dennis.Westfall@intact.net Email: ir@intact.net Phone: 416.941.5336 or 1.866.778.0774 (toll-free within North America) Fax: 416.941.0006 www.intactfc.com/I