Intact Financial Corporation · TSX:IFC
Intact Financial — Q1 2011 Earnings Presentation
17 slides from Intact Financial's earnings presentation, 2011
Slide 1: Q1-2011 Review of performance
Q1-2011 Review of performance
Slide 2: Q1-2011 Review of performance conference call
Q1-2011 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: Charles Brindamour, Chief Executive Officer
Charles Brindamour Chief Executive Officer
Slide 4: Q1-2011 Key points
Q1-2011 Key points First quarter highlights • Net operating income per share of $0.91 – a strong start to the year • Healthy combined ratio of 94.6%, above last year’s exceptional 93.2%, based on this year’s more normal weather conditions • Growth in direct premiums written of 3% reflects our contin
Slide 5: 12-month industry outlook
12-month industry outlook We remain well-positioned to continue outperforming the Canadian P&C insurance industry in the current environment • Industry premiums are likely to increase at a similar pace as in 2010, with Premium growth mid-single digit growth in personal auto (driven by Ontario); uppe
Slide 6: We remain confident of our prospects
We remain confident of our prospects • Our strategies and action plans continued to pay off: − Underwriting remained strong with a combined ratio of 94.6% − Net operating income per share of $0.91 − Excess capital of over $784 million at the end of the first quarter • Disciplined underwriting and ro
Slide 7: Mark Tullis, Chief Financial Officer
Mark Tullis Chief Financial Officer
Slide 8: Financial highlights
Financial highlights (in $ millions, except as otherwise noted) Q1-2011 Q1-2010 Change Direct premiums written (in $ millions, except as otherwise noted) $943 $914 3% Net underwriting income $58 $69 (16)% Combined ratio 94.6% 93.2% 1.4 pts Net operating income per share (in dollars) $0.91 $0.95 (4)%
Slide 9: Personal lines impacted by more seasonal weather
Personal lines impacted by more seasonal weather (in $ millions, except as otherwise noted) Combined ratios Personal auto Q1-2011 Q1-2010 Change 97.7% 97.0% Direct premiums written $458 $452 1% 25.3% 26.2% Underwriting income $12 $16 (25)% 72.4% 70.8% Combined ratio 97.7% 97.0% 0.7 pts Q1-2011 Q1-20
Slide 10: Strong results in commercial lines continue
Strong results in commercial lines continue (in $ millions, except as otherwise noted) Q1-2011 Q1-2010 Change Combined ratios Commercial auto 91.7% 95.0% Direct premiums written $76 $71 7% 30.6% 29.5% Net underwriting income $7 $4 75% 62.2% 64.4% Combined ratio 91.7% 95.0% (3.3) pts Q1-2011 Q1-2010
Slide 11: High quality investment portfolio
High quality investment portfolio Net investment gains (losses) $8.6 billion in investments (in $ millions, except as otherwise noted) Cash and short Q1-11 Q1-10 Change Debt securities Loans term notes 4% 4% Gains on fixed income securities & 1 6 (5) related derivatives Common shares 14% Equity secu
Slide 12: Transition to IFRS: impact on 2010 profitability
Transition to IFRS: impact on 2010 profitability Reconciliation of the key profitability indicators: Employee (in $ millions, except as otherwise noted) Canadian future benefits Financial GAAP and other instruments IFRS For the year ended December 31, 2010 adjustments Net income 420 (4) 81 497 Net o
Slide 13: Transition to IFRS: impact on financial position
Transition to IFRS: impact on financial position Reconciliation of the key financial position indicators: Employee Canadian future benefits Financial (in $ millions, except as otherwise noted) GAAP and other instruments IFRS As at December 31, 2010 adjustments Total assets 12,149 (74) - 12,075 Total
Slide 14: Strong capital position enables us to return capital
Strong capital position enables us to return capital Strong balance sheet NCIB update as of May 2, 2011 • Financial position remains very strong • Number of shares purchased: 711,900 with $784 million in excess capital, based • Average price per share: $47.49 on MCT of 170% • Total cost to date: $33
Slide 15: Strategic, operational and financial strength
Strategic, operational and financial strength • Largest P&C insurance company with substantial scale advantage in the market • Strong financial position • Excellent long-term earnings power • Organic growth platforms easily expandable • M&A environment more conducive to consolidation • Well-position
Slide 16: Forward-looking statement disclaimer
Forward-looking statement disclaimer Certain of the statements in this document 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 statements.
Slide 17: Q2-2011 Earnings conference call Thursday August 4, 2011
Q2-2011 Earnings conference call Thursday August 4, 2011