Intact Financial Corporation · TSX:IFC
Intact Financial — ING Canada — Scotia Capital Financials Summit 2006
14 slides from Intact Financial's conference presentation, Sep 13, 2006
Slide 1: Scotia Capital Financials Summit 2006
Scotia Capital Financials Summit 2006 Claude Dussault, President & CEO, ING Canada September 13, 2006 1
Slide 2: Forward Looking Statement Disclaimer
Forward Looking Statement Disclaimer Certain of the statements contained in this presentation about our 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 stateme
Slide 3: Our Goal
Our Goal To create a sustainable, superior performance gap, as measured by return on equity, relative to the Canadian property and casualty industry of not less than 500 basis points (5%). Continued superior profitability will be deployed in part to reinvest in strategies designed to expand the ROE
Slide 4: A Track Record of ROE Outperformance
A Track Record of ROE Outperformance ROE Performance of our Insurance Subsidiaries Compared to Canadian P&C Insurance Industry Our 40% OurROE ROE performance performance has hasexceeded exceeded 11-year avg. 30% Canadian Canadianindustry industry = 17.4% by 750 bps by 750 bps on 20% onaverage averag
Slide 5: Key Strategies: ING Canada
Key Strategies: ING Canada Expand ROE gap with competition by leveraging scale Strengthen market position through organic growth Strengthen market position through value-creating acquisitions 5
Slide 6: Expand ROE Gap with Competition by Leveraging Scale
Expand ROE Gap with Competition by Leveraging Scale Pricing and underwriting − Sophisticated pricing strategy − Large proprietary experience database − Focus on economic value drivers and proprietary tools to exploit market inefficiencies (CVI, EVI) − Disciplined risk selection process − Strengthe
Slide 7: Annualized Returns
Expand ROE Gap with Competition: Investments ING Canada has Historically Outperformed the Competition 10.0% 9.0% Annualized Returns 8.0% 7.0% 6.0% 5.0% 1 year 2 years 3 years 4 years 5 years Annualized Periods Ending December 31, 2005 Median 75th Percentile ING Canada Source: CanadianMgrSearch.com P
Slide 8: Optimize Capital and Investment Management
Optimize Capital and Investment Management ING Canada has a strong capital position as at June 30, 2006 − Excess capital at insurance companies of $264 million (at 175% MCT) − $806 million in liquid investments at holding company − $1 billion shelf filing remains untapped We remain focused on ut
Slide 9: Strengthen Market Position
Strengthen Market Position ING Canada Premium Growth vs. Industry Premium Growth1) ING INGCanada’s Canada’s YOY YOYpremium premiumgrowth growth 400% isis1.4% 1.4% YTD in‘06 YTD in 10-year CAGR ‘06 despite rate declines = 13.5% despite rate declines 300% 200% Industry 2) 10-year CAGR = 7.0% 100% 0% 9
Slide 10: Strengthen Market Position: Organic Growth
Strengthen Market Position: Organic Growth Strengthen relationship with brokers − Ease of doing business for distributors and customers (Accel, Savers) − Services to help brokers grow their business (e.g. marketing programs, Quest) − A customer-centric culture − Support broker partners in acquisit
Slide 11: Our Goal
Our Goal To exceed the annual organic growth rate in direct premiums written of the Canadian property and casualty industry by at least 300 basis points (3%). 11
Slide 12: Strengthen Market Position: Acquisitions
Strenthen Market Position: Acquisitions Approximate Size of Acquisition Proven integration Acquisition Year of Acquisition (DPW) 1) ($ millions) capabilities Allianz Canada (Personal and Small to Medium 2004 600 Successfully Commercial Lines) Zurich (Personal and Small Commercial Lines) 2001 510
Slide 13: Fragmented Industry Provides Growth Opportunities
Fragmented Industry Provides Growth Opportunities $5.0 Direct Premiums Written ($ Billions) 55largest $4.0 largestfirms firms== 36% 3.9 36%ofofthe themarket market Top Top10 10==55% 55% $3.0 3.1 $2.0 2.0 1.8 1.8 $1.0 $0.0 Aviva Co-operators The Economical Northbridge Canada General Insurance Group M
Slide 14: Questions and Discussion
Questions and Discussion ING 4