Slide 1: Building a world-class P&C insurer: Review of performance Q3-2012
Building a world-class P&C insurer Review of performance Q3-2012 Wednesday, November 7th, 2012
Slide 2: Charles Brindamour, Chief Executive Officer
Charles Brindamour Chief Executive Officer
Slide 3: Q3-2012 key points
Q3-2012 key points Highlights • Net operating income per share of $0.89, despite $1.02 per share in net losses from weather-related events • Combined ratio of 95.9%, driven by strong results in commercial lines • Premium growth of 47%, reflecting additions of AXA Canada and JEVCO • Operating ROE of
Slide 4: Canadian P&C industry 12-month outlook
Canadian P&C industry 12-month outlook We remain well-positioned to continue outperforming the Canadian P&C insurance industry in the current environment • Industry premiums are likely to grow at mid-single digit rate – Low single digit growth in personal auto and commercial lines Premium growth – U
Slide 5: Summary
Summary • Key takeaways: − Operating ROE of 16.4%, despite elevated weather-related losses in personal lines − AXA integration remains on track − Have begun renewing JEVCO business on IFC systems Given the quality of our operational platforms, the flexibility provided by our solid financial position
Slide 6: Mark Tullis, Chief Financial Officer
Mark Tullis Chief Financial Officer
Slide 7: Financial highlights
Financial highlights (in $ millions, except as otherwise noted) YTD YTD Q3-2012 Q3-2011 Change Change 2012 2011 Direct premiums written 1,798 1,226 47% 5,178 3,523 47% Underwriting income 67 65 3% 313 155 102% Combined ratio 95.9% 94.2% 1.7 pts 93.5% 95.2% (1.7) pts Net operating income per share $0
Slide 8: Elevated weather losses in personal lines
Elevated weather losses in personal lines (in $ millions, except as otherwise noted) Combined ratios Personal Auto Q3-2012 Q3-2011 Change 94.9% 86.4% Direct premiums 22.8% 23.8% written 843 622 36% 72.1% Underwriting 62.6% 39 77 (49)% income Q3-2012 Q3-2011 Combined ratio 94.9% 86.4% 8.5 pts Claims
Slide 9: Exceptional results in commercial lines
Exceptional results in commercial lines (in $ millions, except as otherwise noted) Combined ratios Commercial auto Q3-2012 Q3-2011 Change 77.0% 82.8% 28.3% Direct premiums 26.8% 132 83 59% written 50.2% 54.5% Underwriting 31 15 107% income Q3-2012 Q3-2011 Combined ratio 77.0% 82.8% (5.8) pts Claims
Slide 10: High quality investment portfolio
High quality investment portfolio Net investment gains (losses) $12.8 billion in investments (in $ millions, except as otherwise noted) Loans, 3% Cash and short Fixed income securities Q3-12 Q3-11 Change term notes, 5% Gains (losses) on fixed-income Common 3 (1) 4 Shares, 10% securities & related de
Slide 11: Financial position remains solid
Financial position remains solid • Our financial position remains solid with $598 million in excess capital and an estimated MCT of 201% • Book value per share of $31.81, 10% higher than a year ago • Operating ROE of 16.4% in the past 12 months • Debt-to-capital ratio of 19.5% is below internal targ
Slide 12: Update on acquisitions
Update on acquisitions • AXA Canada integration remains on track − Retention on the AXA Canada portfolio is comparable to that of the Intact portfolio, and broker support continues to be strong − We continue to target $100 million in annual after-tax synergies, with a $45 million run-rate at Septemb
Slide 13: Strategic, operational and financial strength
Strategic, operational and financial strength • Largest P&C insurance provider in Canada • Solid financial position • Excellent long-term earnings power • Organic growth platforms easily expandable Our solid financial position and disciplined approach to the business provide a strong foundation from
Slide 14: Forward looking statements and disclaimer
Forward looking statements and disclaimer 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-l
Slide 15: 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 16: Building a world-class P&C insurer: Q4-2012 earnings call
Building a world-class P&C insurer Q4-2012 earnings call Wednesday February 6th, 2013