Intact Financial Corporation · TSX:IFC
Intact Financial — Investor Day (2022)
86 slides from Intact Financial's investor day presentation, 2022
Slide 1: Strengthening Our Outperformance
I N V E S T O R D A Y 2 0 2 2 STRENGTHENING OUR OUTPERFORMANCE 1
Slide 2: Forward looking statements
Forward looking statements 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-looking statemen
Slide 3: 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 inducement to enter into, any contract or commitm
Slide 4: Agenda
Agenda Time Presentation Speaker 9:00 am ET A Clear Vision for Intact Charles Brindamour & Louis Marcotte 9:25 am ET Winning in Canada Louis Gagnon, Anne Fortin & Imen Zitouni 9:50 am ET Video – Data & AI Isabelle Girard 9:55 am ET Outperforming in UK&I Ken Norgrove & Ken Anderson 10:15 am
Slide 5: A Clear Vision for Intact
A Clear Vision for Intact Charles Brindamour Louis Marcotte I N V E S T O R D A Y 2 0 2 2 5
Slide 6: A solid track record to build on
A solid track record to build on 10-year 10-yr average outperformance NOIPS CAGR 640 bps 12% 25.0% 8.2 pts 8.3 pts 10.0 pts $12.41 6.2 pts 6.9 pts 6.5 pts 7.1 pts 5.8 pts 5.3 pts 5.1 pts 4.1 pts 5.0 pts 20.0% 21.0% $9.92 0.0 pts 16.8% 15.0% 16.1% 15.0% 14.3% $6.38 $6.16 -5.0 pts 13.0% $5.67 $5.60 $5
Slide 7: All levers used to deliver on objectives
All levers used to deliver on objectives 10% 500bps NOIPS Last ANNUAL Last GROWTH ANNUALLY OVER TIME 10 years ROE OUTPERFORMANCE 10 years Organic premium growth 3% Claims management 290 bps Pricing & risk selection Operating margin expansion 5% Distribution 140 bps Strategic capital deployment 4% In
Slide 8: RSA has accelerated our strategy
RSA has accelerated our strategy AFTER A FULL YEAR OF RSA IFC Group1 RSA contribution1 DPW $20.9B +58% Combined Ratio 90.3% 0.5pts Investment Income $827M +38% Distribution Income $415M +6% NOIPS $12.49 +15% OROE 15.4% -0.9pts BVPS $80.86 +24% 1 Estimated contribution from the RSA acquisition, compa
Slide 9: We have grown by adapting to a changing environment
We have grown by adapting to a changing RSA environment ~$35B Market Cap GCNA Big trends impacting the external environment ONEBEACON CUSTOMERS & DIGITAL DATA & AI $20.9B DPW INDUSTRY CLIMATE CHANGE INNOVASSUR CONSOLIDATION CANADIAN METRO DIRECT 26,000 GENERAL FTEs JEVCO AXA CANADA Chatbots First Lo
Slide 10: Delivering on ambitious objectives leads to good outcomes
Delivering on ambitious objectives leads to good outcomes IFC 350% 10-year Annualized TSR 16% 300% TOTAL SHAREHOLDER RETURN + 214% 250% 200% 150% TSX60 10-year 100% Annualized TSR 9% 50% 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 IFC TSX60 As of September 19, 2022 10 10 I N V E S T O R D A
Slide 11: What we are aiming to achieve
What we are aiming to achieve 11 11 I N V E S T O R D A Y 2 0 2 2
Slide 12: Our values guide us
Our values guide us 12 12 I N V E S T O R D A Y 2 0 2 2
Slide 13: How we see the world
How we see the world CONSUMERS Consumer expectations are changing TECHNOLOGY Software changes how we live DATA Data continues to explode ENVIRONMENT Economies accelerate towards Net Zero SOCIO-ECONOMIC Economic challenges under a spotlight INDUSTRY Industry remains active on M&A, faces challenges TA
Slide 14: A clear roadmap to achieving our ambitions
A clear roadmap to achieving our ambitions *Based on a weighted-average ROE benchmark of leading P&C insurers in Canada, US and UK. 14 I N V E S T O R D A Y 2 0 2 2
Slide 15: Strong platforms to grow and outperform
Strong platforms to grow and outperform OUR SEGMENTS Canada’s UK&I largest P&C insurer UK & Ireland $20.2B Top 5 P&C Insurer US DPW Canada OUR LINES OF BUSINESS Leading Specialty lines Specialty 23% lines platform Personal auto 30% $20.2B DPW Commercial lines 23% Personal property $500B+ market oppo
Slide 16: Winning in Canada
Winning in Canada Louis Gagnon Anne Fortin Imen Zitouni I N V E S T O R D A Y 2 0 2 2 16
Slide 17: Our track record of outperformance
Our track record of outperformance DPW growth over the last decade IFC Canada: Combined Ratio outperformance 10% 10 9 93% 98% 93% 95% 94% 95% 98% 92% 100% CAGR 8 92% 90% 86% 7 80% 6 5 70% 4 Industry: 60% 3 5.6% 2 4.8 pts 10-yr 50% average 1 outperformance 0 40% 2012 2013 2014 2015 2016 2017 2018 201
Slide 18: RSA has transformed our Canadian platform
RSA has transformed our Canadian platform 20% Market share +30% Premium growth +4pts in Underwriting +35% income +78% in Direct Channel DPW +33% in Specialty lines DPW +17% Employees & talent 18 I N V E S T O R D A Y 2 0 2 2
Slide 19: Integration progressing ahead of expectations
Integration progressing ahead of expectations Q2 Day 0 Day 30 4 months Aug 2022 Now 2023 2025 End of integration Engage All All Claims Start Start with broker employee Start policy vendor conversion of conversion of and affinity positions conversion contracts on Johnson Specialty partners confirmed
Slide 20: Lots of growth opportunities remain in Canada
Lots of growth opportunities Market share by channel remain in Canada INDUSTRY DPW IFC MARKET SHARE: 11% $24.8B $44.7B IN A FRAGMENTED MARKET IFC MARKET SHARE: 25% 20% MARKET SHARE IFC DIRECT BROKER 9% 9% Market share by product 6% 6% INDUSTRY DPW 5% 5% 4% 3% 3% IFC MARKET SHARE: IFC MARKET SHARE: 2
Slide 21: Our strategic roadmap
Our strategic roadmap Expanding our leadership position in Canada Leading customer 3 out of 4 customers experience digitally engaged Scale in Further consolidation distribution in Canada Outperform industry combined ratio by 5 pts TRANSFORM OUR COMPETITIVE ADVANTAGES Global leader in leveraging data
Slide 22: Leading customer experience
Leading customer experience 22
Slide 23: Delivering a second-to-none customer experience
Delivering a second-to-none customer experience Brand leadership Digital Leveraging our Omnichannel Superior claims & product offering engagement data / AI experience service Overall advocacy (relationship): 55% On our way to 3 out of 4 customers as our advocates Transactional average: 67% YTD 2022
Slide 24: Complementary brands and product offering to reach every Canadian
Complementary brands and product offering to reach every Canadian COAST High Net Worth: Multi-product Small & Specialized Knowing our customers MGAs New brand offering for groups Mid-Market expertise INTACT PUBLIC ENTITIES Leading customer experience 24 I N V E S T O R D A Y 2 0 2 2
Slide 25: Brand leadership: benefitting from strong, well-known brands
Brand leadership: benefitting from strong, well-known brands Outperforming in brand awareness Being known for what people care about +20 pts Intact Insurance +13 pts Gives good value for money +10 pts +6 pts Provides second to none CX Offers a superior claims experience belairdirect Makes insurance
Slide 26: Omnichannel experience
Omnichannel experience Driving efficiency and providing choice at every step of the customer journey Leading Centralized self-serve ecosystem tools for for agents customers Drive operational efficiency Choose how & when to interact with us APP EMAIL CHAT SMS WEBSITE PHONE SOCIAL NETWORK MARKETING QU
Slide 27: Superior claims service
Superior claims service Customer experience and operational efficiency Being there for customers Driving outperformance when they need it most Score at Service Centres, +11pts Invest in supply chain (incl. OnSide) NPS on average1 Internalization Rely Network Claims Data Analytics team 70% of Auto cl
Slide 28: Digital engagement
Digital engagement 28
Slide 29: On our way to 3 out of 4 clients digitally engaged
On our way to 3 out of 4 clients digitally engaged Highly ranked insurance app 1 2 out of use Client Centre 1 3 out of use the app (all brands) (all brands) Digital New UBI belairdirect New UBI program proof of Auto program Weather Client Centre Mobile App with personalized insurance claim model Ale
Slide 30: Digital as a significant source of new business growth
Digital as a significant source of new business growth $850M $150M of digital of digital DPW new business Main drivers for sustained growth Modernization of technology systems Unified car + homes quotes available across brands, in major markets Digital book of business = DPW originating from an onli
Slide 31: Tools to engage digitally for each step in the customer journey
Tools to engage digitally for each step in the customer journey Over 3 million transactions done online annually Growing portion of customers self-serving contributing to managing expense ratio No compromise on profitability 50% of digital transactions 3 out of 4 customers digitally 31 engaged I N V
Slide 32: UBI: increasing customer engagement while improving loss ratio
UBI: increasing customer engagement while improving loss ratio Latest generation of UBI: Accelerating segmentation benefits Highly predictive: 65-point gap in loss ratio between best and worst 1/3 of drivers Program allowing for discounts or surcharges, based on driving profile Incentive to enroll t
Slide 33: Click here to watch our Digital Experience video
Click here to watch our Digital Experience video
Slide 34: Scale in distribution
Scale in distribution 34
Slide 35: Our distribution footprint, second to none in industry
Our distribution footprint, second to none in industry Distribution optionality to reach all customers Owned distribution a driver of ROE outperformance Claims Management Pricing & risk selection Distribution 140 bps Last 10 years AUTHORIZED AGENCY Investment & capital management Target ROE outperfo
Slide 36: Strong broker relationships support our growth ambitions
Strong broker relationships support our growth ambitions Broker Financial Solutions Broker 91% Intend to channel continue doing 75% business with us in next 3-5 years 182 active of our book in 4 agencies Canada relationships in Quebec 2022 Distribution income: $200M Partner volume: $2.8B of Intact D
Slide 37: BrokerLink: competitive edge in consolidating market
BrokerLink: competitive edge in consolidating market TODAY 2025 AMBITION Leading digital $3B $5B broker Among largest brokerages nationwide Book of business has nearly doubled since last IR day (2019): 224 Locations • Personal lines: from $1.3B to $2.1B 3,400 employees • Commercial lines: from $0.5B
Slide 38: Direct Distribution: profitable growth and affinity
Direct Distribution: profitable growth and affinity Total expense ratio – belairdirect 30% 26.6% Aspirational 25% Future state objectives 20% Expense ratio 15.0% 15% • 15% goal 10% #1 digital provider 5% • 50% digital transactions by 2025 0% Maintain high employee engagement • 85% engagement Top non
Slide 39: On our way to 1 in 3 Canadians as our customers
On our way to 1 in 3 Canadians as our customers IFC Canada: 25 Raising the bar on ambitions $20B 20 by 2027 20 14 15 12 9 10 10 5 DPW IFC CANADA (in B$) 0 2019 2020 2021 2022 2022 2025 5-Year (projection) PROJECTION (ambition) AMBITION +5 pts Combined ratio outperformance 39 I N V E S T O R D A Y 2
Slide 40: Outperforming in UK&I
Outperforming in UK&I Ken Norgrove Ken Anderson I N V E S T O R D A Y 2 0 2 2
Slide 41: UK&I: positive performance momentum
UK&I: positive performance momentum UK&I combined ratio (rolling 3-year average) FY’21 UK&I combined ratio vs. industry IFC announce RSA takeover 98.2% 100.0% 98.6% 99.0% 98.5% 94.9% 93.3% 93.0% 95.5% 95.0% 93.9% 93.5% 88.6% 86.9% 90.0% RSA acquisition closed 85.0% Dec 17 Dec 18 Dec 19 Dec 20 Dec 21
Slide 42: Tangible actions taken since acquisition to improve performance
Tangible actions taken since acquisition to improve performance Niche Motor & Delegated Home Middle East Pricing and underwriting Portfolios Partnerships excellence: created a UK focused pricing team in Canada Commercial proposition: new broker £85M promise and enhancement to service 118% CR levels
Slide 43: Significant market opportunity
Significant market opportunity UK Commercial lines1 UK Personal lines2 Ireland £20B £20B £3B 4% 4% 10% #6 #7 #4 Market combined ratio4: 94% Market combined ratio4: 92% Market combined ratio4: 93% Market Size3 (£) RSA Market Share (%) Strong RSA brands Leading partnership provider #2 UK Home # 1 UK P
Slide 44: UK market dynamics
UK market dynamics UK Commercial lines market UK Personal lines market MARKET SHARE BY CHANNEL1 MARKET SHARE BY CHANNEL1 NEW BUSINESS SHARE 4% NON-AGGREGATOR 15% 10% 38% 25% 86% 75% 47% AGGREGATOR Brokers Direct Partners Brokers Direct Partners • Distribution primarily through brokers • Aggregators
Slide 45: Our strategic roadmap
Our strategic roadmap Clear roadmap to low 90s combined ratio by 2025 Expand broker (CL) Leading customer and direct (PL) experience distribution Optimize Responsive and underwriting for agile technology outperformance and operations Low 90’s combined ratio LEVERAGE INTACT COMPETITIVE ADVANTAGES Glo
Slide 46: UK Commercial lines: outperformance and growth through SME and Regions
UK Commercial lines: outperformance and growth through a focus on SME and Regions Commercial lines 2021 DPW Financial ambition (combined ratio) Delegated Regions1 95% £269M £455M ~5% Share ~11% Share ~90% UK Commercial lines ~£800M SME £90M ~1% Share 2021 2025 Ambition 1 Regions refers to our region
Slide 47: UK Commercial lines strategy: leverage strong regional broker network
UK Commercial lines strategy: leverage strong regional broker network REGIONAL OFFICE NETWORK Increase the number and depth of broker relationships • Developing new broker segmentation and targeting • Developing refreshed broker proposition for 2023 < 90s 10 Combined Regional ratio Improving our onl
Slide 48: UK Personal lines: deliver outperformance in Home & Pet
UK Personal lines: deliver outperformance in Home & Pet while improving overall profitability Personal lines 2021 DPW Financial ambition (combined ratio) Motor Home 98% £115M £507M ~1% Share ~8% Share ~95% UK Personal lines ~£850M Pet Direct £230M ~18% Share Partnership 2021 2025 Ambition 48 48 I N
Slide 49: UK personal lines: growth of direct through technical capability
UK personal lines: growth of direct through competitive advantage in technical capability REBALANCING OUR PORTFOLIO MIX Prioritize direct customer growth • Renewed focus on direct brand Direct Direct • Finalize refresh of direct products 30% 50% Step change in technical capabilities Partnership Part
Slide 50: Ireland: good market position and track record of performance
Ireland: good market position and track record of performance Ireland 2021 DPW Business performance (combined ratio) Personal Commercial 91% lines Home lines 89% £68M £143M ~11% Share ~7% Share 87% Ireland ~£350M Personal lines Motor £124M ~11% Share 2019 2020 2021 50 50 I N V E S T O R D A Y 2 0 2
Slide 51: Ireland: scalable platform and agility will support continued outperformance
Ireland: scalable platform and agility will support continued outperformance and profitable growth Scalable platform Further increase confidence in our brand • Enhanced focus on confidence as a differentiator • Growth levers of brand, product and digital • Leveraging Intact’s capabilities in digital
Slide 52: Our strategic roadmap will deliver our bottom-line ambition
Our strategic roadmap will deliver our bottom-line ambition DPW DPW DPW £2.8B £2.8B £3.0B+ 98% Actions combined ratio taken 94% combined ratio Pricing Low 90’s - 4 pts Claims + 3 to 4 pts Efficiencies combined ratio - 3 to - 4 pts UK PL - 1 to - 2 pts ~95% - 1 to 2 pts Investment UK CL ~90% Ireland
Slide 53: Building a Global Specialty Lines Leader
Building a Global Specialty Lines Leader Mike Miller Darren Godfrey Lynn O’Leary I N V E S T O R D A Y 2 0 2 2
Slide 54: We're building a global specialty solutions leader
We’re building a global specialty solutions leader More than Running at a $5B sustainable RSA Jun-21 low-90s in annual DPW combined ratio $5.2B GCNA $4.8B 91.8% + FCC 2016-22 One- Dec-19 Avg. C/R Beacon Sep-17 $2.9B $2.5B $2.3B $2.2B Sub-90 Post-RSA C/R $628m 2016 2017 2018 2019 2020 2021 LTM 2016 2
Slide 55: Access to over $375B of SL premium globally
Access to over $375B of SL premium globally Up more than twenty-fold since the initial carve-out of SL in 2016 Local share of global SL market Est. SL DPW Europe Canada 16% $90B 3% $16B Chapter 1: What is our view of the existing London Market European Business? 10% $55B United States 41% $225B Our
Slide 56: Our strategic roadmap
Our strategic roadmap Building a Global Specialty Solutions leader Specialized Expand customer value distribution proposition Profitable & Consolidate growing mix of fragmented market verticals Low 90’s combined ratio LEVERAGE INTACT COMPETITIVE ADVANTAGES Global leader in leveraging data and Deep C
Slide 57: A highly engaged team of experts
A highly engaged team of experts In a structure built on the virtues of the Specialty Lines customer value proposition Claims Actuarial Dedicated claim lead Dedicated pricing actuary We again achieved Risk Control Finance best employer status thanks to our highly engaged employee base Dedicated risk
Slide 58: Deep distribution relationships
Deep distribution relationships Expanding broker partnerships and a growing portfolio of owned assets $2B+ $2.5B+ = Local & Owned Distribution Assets Global Brokers = Nearing $1B Specialist Brokers Large players, significant industry influence in annual premium volume Add value to unique customer ni
Slide 59: Diverse but targeted product offering
Diverse but targeted product offering Greatly enhanced through the acquisition of RSA Segments > $250M U.S. Canada London Europe 68% Meaningful, leading positions in… Property Casualty Specialty1 33% 25% 42% …a set of diverse & uncorrelated verticals… LONDON & US EUROPE CANADA 41% 25% 34% …written t
Slide 60: Our ambition for 2030
Our ambition for 2030 Outperformance beyond the top quartile 110% 105% $10B 10-Yr Average Combined Ratio (2012-21) Direct Written 100% Premium 95% Sustainable IFC GSL Sub-90 90% Combined Ratio Ambition for 2030 85% 80% 0 5 10 15 20 25 30 35 2021 Premium ($ billions) Global Specialty / Commercial Lin
Slide 61: How we'll get there
How we’ll get there Profitable & Growing Expand Consolidate Mix of Verticals Distribution Fragmented Market Vertical Expanded Acquisition “export” distribution opportunities opportunities opportunities Proven track record of UK&I expands our Continued growth of value creation via addressable market
Slide 62: How we'll get there
How we’ll get there Transform our Invest in Profitable & Growing Competitive Advantages our People Mix of Verticals Underwriting Ongoing Improved and pricing investment in portfolio sophistication technology quality and mix We over-index by more Will enable our Including sizeable than 2x on actuaria
Slide 63: Key takeaways
Key takeaways We’ve built a and access to $375B Specialty Solutions with a strong core of Specialty Lines Leader platform premium globally Our ambition is $10B guided by clear, cementing Specialty at a sustainable attainable top and Lines as a core sub-90 CR by 2030 bottom-line plans value driver fo
Slide 64: Board Panel: Strategy & Governance
Board Panel: Strategy & Governance Bill Young Dr. Indira Samarasekera Moderator: Frederic Cotnoir I N V E S T O R D A Y 2 0 2 2 64
Slide 65: IFC Board of Directors
IFC Board of Directors Emmanuel Clarke AUDIT COMMITTEE Janet De Silva CHAIR Jane Kinney Stephani Kingsmill CHAIRMAN COMPLIANCE REVIEW & CORPORATE GOVERNANCE COMMITTEE Bill Young CHAIR Sylvie Paquette Frederick Singer HR AND COMPENSATION COMMITTEE Stuart Russell CHAIR Indira Samarasekera Carolyn Wilk
Slide 66: Investing for Returns
Investing for Returns Louis Marcotte Werner Muehlemann I N V E S T O R D A Y 2 0 2 2
Slide 67: Our strategic roadmap
Our strategic roadmap Strong capital & investment management expertise *Based on a weighted-average ROE benchmark of leading P&C insurers in Canada, US and UK. 67 I N V E S T O R D A Y 2 0 2 2
Slide 68: Maintaining a strong balance sheet
Maintaining a strong balance sheet High-quality investment portfolio Prudent reserving practices Strong capital base Prior-Year Development Ratio2 $34B1 3.7 Total Capital Margin $2.5B % 3.7% 1-3% 10-year average Expected favourable long-term Adjusted debt-to-total >75% Fixed Income and Short Term PY
Slide 69: Investment management is key to delivering our objectives
Investment management is key to delivering our objectives Sustained contributor to NOIPS Strong track record of ROE outperformance 700 ~50% 600 of NOIPS 500 10-yr average +111bps1 400 10-yr average outperformance 300 200 ~50% ~50% 100 Asset allocation Active & benchmark management 0 selection 2012 2
Slide 70: Global asset base with world class in-house management
Global asset base with world class in-house management Multiple TopGun award winning $20B $10B $4B ~65% Track record of active managed management outperformance in-house Efficient cost structure $34B P&C Assets Investment strategy tailored as at June 2022 to IFC objectives 70 70 I N V E S T O R D A
Slide 71: Asset allocation is designed to outperform
Asset allocation is designed to outperform IFC invested P&C assets June 2022 Maximise total return after tax Sophisticated Cross-border capital Fixed Income and Short Term asset-liability matching optimization Private Debt Robust stress testing Liquidity management Preferred Shares Real Estate Smart
Slide 72: M&A has accelerated strategy evolution and enhanced outperformance
M&A has accelerated strategy evolution and enhanced outperformance 2016 P&C ASSET 2022 P&C ASSET ALLOCATION ALLOCATION • P&C invested assets +70% $13B $34B • Asset transition impact on investment income +$80M pa • Operational synergies +$6M pa • Increased asset class and geographical diversification
Slide 73: Maintaining a strong balance sheet
Maintaining a strong balance sheet High-quality investment portfolio Prudent reserving practices Strong capital base Prior-Year Development Ratio2 $34B1 Total Capital Margin $2.5B 3.7% 1-3% 10-year average Expected favourable long-term Adjusted debt-to-total >75% Fixed Income and Short Term PYD rang
Slide 74: A strong capital base
A strong capital base Capital Margin composition Q2-2022 capital metrics Regulatory capital ratios1 Total Capital Excess Capital Margin Canada UK&I U.S. Capital (MCT) (SCR) (RBC) $2.5B Operating Margin Capital 194% 180% 414% Company Capital Margin operating range: $2.0B to $2.5B Action Level Supervi
Slide 75: Proven and consistent capital management strategy
Proven and consistent capital management strategy Strong capital generation Strategic capital deployment Over $8B of total capital Acquisitions $11.3B generated since 2012 $1.4B $1.4B Dividends $3.9B $1.1B $0.9B Organic Growth $1.4B $0.9B $0.7B $0.6B Buybacks $0.3B $0.5B $0.5B $0.4B 2012 2013 2014 2
Slide 76: M&A is an accelerator of our strategy
M&A is an accelerator of our strategy 15% NOIPS CAGR (2009 – 2021) 11.1% 10.7% $12.41 8.2% 8.3% $9.92 6.9% 7.1% 6.5% 6.2% 5.8% 5.1% 5.3% 4.1% $6.38 $6.16 $5.67 $5.60 $5.74 $5.00 $4.88 $3.91 $3.49 $3.62 $2.35 INNOVASSUR ASSURANCES GÉNÉRALES (2.1%) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 201
Slide 77: Significant opportunity for further M&A
Significant opportunity for further M&A UNDERWRITING: FRAGMENTED MARKET TO CONSOLIDATE DISTRIBUTION: SIGNIFICANT OPPORUNITY TO EXPAND 4% CANADA: 20% IFC 3,000+ 1 FOCUS TO EXPAND 11% Mutual (top 50) 10-15 pts 36% brokers in market OUR LEADERSHIP of industry share 60% 69% Adressable POSITION market ex
Slide 78: Strong process to identify, acquire and integrate
Strong process to identify, acquire and integrate Since IFC inception… 9 16,000+ $12B $13B >19% Employees IRR Acquisitions Capital deployed DPW added onboarded Getting to the start line Deal making / due diligence Integration • Monitor and analyze targets for years • Target fair and rapid negotiatio
Slide 79: RSA acquisition: strategically and financially compelling
RSA acquisition: strategically and financially compelling EXPANDED LEADERSHIP BOLSTERED LEADING ENTERED THE UK & POSITION IN CANADA SPECIALTY LINES PLATFORM IRELAND AT SCALE >50% Strategically Compelling Direct Premiums Written ~$3B Direct Premiums Written +4% market share Attractive valuation Stron
Slide 80: RSA acquisition: value creation has exceeded expectations
RSA acquisition: value creation WHAT HAS CHANGED IN OUR SYNERGIES ESTIMATE? has exceeded expectations Firmed-up underwriting actions • Superior rating, segmentation & risk selection Annual, pre-tax run-rate expected within 36 months • Leveraging scale & AI investments Synergies NOIPS accretion IRR •
Slide 81: Closing Remarks
Closing Remarks Charles Brindamour Louis Marcotte I N V E S T O R D A Y 2 0 2 2 81 81
Slide 82: The roadmap is clear
The roadmap is clear *Based on a weighted-average ROE benchmark of leading P&C insurers in Canada, US and UK. 82 I N V E S T O R D A Y 2 0 2 2
Slide 83: The ambitions are clear
The ambitions are clear 12-Month Medium to long-term ambitions Guidance UK & Personal lines: Commercial lines: Profitable Low 90’s High 90’s 2025 International Low 90’s Growth performance Personal Personal Commercial DPW: 5pts CR Canada auto: property: lines: $20B outperformance 2027 Sub-95 Sub-95 L
Slide 84: Our roadmap is built to deliver on our objectives
Our roadmap is built to deliver on our objectives 10% 500bps NOIPS Targeted ANNUAL Targeted GROWTH ANNUALLY OVER TIME Contribution ROE OUTPERFORMANCE Contribution Organic Premium growth ⅓ Claims management ⅓ Pricing & risk selection ⅓ Operating margin expansion ⅓ Distribution ⅓ Strategic capital dep
Slide 85: Our ROE is on solid footing
Our ROE is on solid footing Stable investment and distribution income secures half of our mid-teens OROE target 18.4% 17.8% 16.8% 16.6% 16.3% 15.4% Average OROE 12.9% 12.5% 12.0% 12.1% 14.7% 11.2% Investment Income & Distribution 8.5 pts 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 H1 2022 (12
Slide 86: A clear vision for Intact
A clear vision for Intact *Based on a weighted-average ROE benchmark of leading P&C insurers in Canada, US and UK. 86 86 I N V E S T O R D A Y 2 0 2 2