Intact Financial Corporation · TSX:IFC
Intact Financial — Q1 2009 Earnings Presentation
17 slides from Intact Financial's earnings presentation, 2009
Slide 1: 2009 First quarter Review of performance
2009 First quarter Review of performance
Slide 2: Q1-2009 Review of performance conference call
Q1-2009 Review of performance conference call Charles Brindamour Chief Executive Officer Mark Tullis Chief Financial Officer Martin Beaulieu SVP, Personal lines Byron Hindle SVP, Commercial lines 2
Slide 3: Q1-2009 Key points
Q1-2009 Key points First quarter highlights • 3.6% increase in operating income per share reflects higher underwriting income and share repurchases in 2008 • Increase in underwriting income reflects solid performance in personal auto and continued strong results in commercial lines • Net loss reflec
Slide 4: Q1-2009 Financial highlights
Q1-2009 Financial highlights (in $ millions, except as otherwise noted) Q1-2009 Q1-2008 Key points Direct premiums written $868.8 $860.3 • Increase in direct written premiums reflects pricing discipline in (excl. pools) all lines of business • Higher underwriting income reflects solid results in per
Slide 5: Key drivers of change in operating income in Q1-09
Key drivers of change in operating income in Q1-09 (in $ millions, except as otherwise noted) Pre-tax operating income, 2008 $89.5 Higher / (lower) Favourable prior year claims development 38.1 Key points • Favourable prior year claims development was 3.9% of opening reserves on an annualized Curren
Slide 6: Our strong financial position
Our strong financial position Strong balance sheet $6.5 billion in cash and invested assets • 208.2% MCT regulatory capital ratio, improved from Common shares 11% (7% net of derivative positions) 205% at year-end 2008 • No debt, $150 million unsecured committed credit Broker loans facility 4% Fixed
Slide 7: Q1-2009 Performance results
Q1-2009 Performance results
Slide 8: Solid performance in largest business, personal auto
Solid performance in largest business, personal auto (in $ millions, except as otherwise noted) Combined ratios** Personal auto Q1-09 Chg* 100.9% 96.1% 94.5% 95.9% Net premiums earned $502.0 (0.9)% 25.7% 24.2% 24.7% 24.7% Underwriting income** $19.6 $24.2 75.2% 71.9% 69.8% 71.2% Combined ratio** 96.
Slide 9: Continued strong performance in commercial lines
Continued strong performance in commercial lines (in $ millions, except as otherwise noted) Combined ratios** Comm. non-auto Q1-09 Chg* 92.1% 96.6% 90.1% Net premiums earned $183.9 (2.6)% 85.3% 37.4% 34.8% 35.6% 35.6% Underwriting income** $6.2 $(8.7) 54.7% 61.8% 54.5% 49.7% Combined ratio** 96.6% 4
Slide 10: Home insurance improvement plan
Home insurance improvement plan Initiatives Target • Rate adjustments, enhanced pricing Pricing segmentation, limits/premium on coverage in high-risk zones for water losses • Double-digit premium increases through higher rates and • Indexing of insured values at renewal time and insured amounts Insu
Slide 11: 2008 combined ratio relative to P&C insurance industry average
2008 combined ratio relative to P&C insurance industry average 2008 combined ratios • Sophisticated pricing and underwriting 107% • In-house claims expertise: 105.2% 103.9% Cdn. P&C Industry 101.5% average = 101.9%* • Innovation **98.3% • Supplier relationships and speed of response reduce cost and
Slide 12: Cash and invested assets
Cash and invested assets | intact] —
Slide 13: Cash and invested assets at March 31, 2009
Cash and invested assets at March 31, 2009 Book Market Unrealized % of market % of market values values G/L values values Asset class in $ millions Q1-09 Q1-08 Cash and Cdn. T-bills $769 $769 $0 12% 0% Fixed income $3,436 $3,473 $37 53% 52% Preferred shares $1,736 $1,244 ($492) 19% 21% Common shares
Slide 14: Q1-2009 Sector diversification (market value)
Q1-2009 Sector diversification (market value) Total Bonds & short Preferred Common S&P/TSX Figures calculated on pos shares shares Composite* GAAP basis. Energy 4% 2% 3% 18% 28% Materials 1% 0% 0% 4% 17% Industrials 2% 2% 0% 4% 6% Technology 0% 0% 0% 1% 5% Telecom 3% 1% 6% 10% 5% Consumer Disc 2% 1%
Slide 15: Well-positioned strategically, operationally, financially
Well-positioned strategically, operationally, financially • Largest provider of P&C insurance with substantial scale advantage in the market • Substantial operational strengths that will enable us to continue to deliver superior underwriting results • Strong financial position and no debt • Excellen
Slide 16: Forward-looking statement disclaimer
Forward-looking statement disclaimer Certain statements in this report or included by reference 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 are forward-looking st
Slide 17: Q2-2009 Earnings conference call
Q2-2009 Earnings conference call August 12, 2009 at 10 a.m. ET