Intact Financial Corporation · TSX:IFC
Intact Financial — Q2 2009 Earnings Presentation
14 slides from Intact Financial's earnings presentation, 2009
Slide 1: 2009 Second quarter Review of performance
2009 Second quarter Review of performance
Slide 2: Q2-2009 Review of performance conference call
Q2-2009 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: Q2-2009 Key points
Q2-2009 Key points Second quarter highlights • Healthy combined ratio of 95.7% reflects a decrease in catastrophe claims offset by lower commercial underwriting income • Direct written premium growth increased to 2.8% as industry conditions point to firmer pricing over the next 12 months • Lower net
Slide 4: Financial highlights
Financial highlights (in $ millions, except as otherwise noted) Q2-2009 Q2-2008 Chg YTD-2009 YTD-2008 Chg Direct premiums written $1250.6 $1216.7 2.8% $2119.4 $2077.0 2.0% (excl. pools) Net underwriting $43.2 $43.4 (0.5)% $51.1 $44.2 15.6% income* Combined ratio* 95.7% 95.6% 0.1pts 97.4% 97.8% (0.4)
Slide 5: Key drivers of change in operating income in Q2-2009
Key drivers of change in operating income in Q2-2009 (in $ millions, except as otherwise noted) Pre-tax operating income, 2008 $138.1 Higher / (lower) Favourable prior year claims development (34.7) Key points • Reduction in catastrophe claims reflects fewer severe storms in the second quarter compa
Slide 6: Our strong financial position
Our strong financial position Strong balance sheet $7.0 billion in cash and invested assets Common shares 13% • 211.1% MCT regulatory capital ratio, improved (8% net of derivative positions) from 208.2% at March 31, 2009 • No debt, $150 million unsecured committed Broker loans Fixed income 4% credit
Slide 7: Q2-2009 Performance results
Q2-2009 Performance results
Slide 8: Strong results in personal auto and significant improvement in personal property
Strong results in personal auto and significant improvement in personal property (in $ millions, except as otherwise noted) Combined ratios** Personal auto Q2-09 Chg* 95.0% 92.8% 89.2% 89.6% Direct premiums $635.2 3.3% 24.8% 24.7% 25.2% 24.4% written (excluding pools) Underwriting income** $53.6 (2.
Slide 9: Strong profitability in commercial auto partly offset by lower commercial non-auto results
Strong profitability in commercial auto partly offset by lower commercial non-auto results (in $ millions, except as otherwise noted) Combined ratios** Commercial auto Q2-09 Chg* 86.9% 89.8% 81.0% Direct premiums $97.2 (0.6)% 26.7% 73.9% 27.6% written (excluding pools) 28.2% 27.8% Underwriting incom
Slide 10: Cash and invested assets
Cash and invested assets | intact] —
Slide 11: Cash and invested assets at June 30, 2009
Cash and invested assets at June 30, 2009 Book Market Unrealized % of market % of market values values G/L values values Asset class in $ millions Q2-09 Q1-09 Cash and Cdn. T-bills $898 $898 $0 13% 12% Fixed income $3,444 $3,463 $19 49% 53% Preferred shares $1,754 $1,462 ($292) 21% 19% Common shares
Slide 12: Strategic, operational, financial strength
Strategic, operational, financial strength • Largest P&C insurance company with substantial scale advantage in the market • Strong financial position and no debt • Excellent long-term earnings power • Organic growth platforms easily expandable Disciplined pricing, underwriting, investment and capita
Slide 13: 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 14: Q3-2009 Earnings conference call November 11, 2009
Q3-2009 Earnings conference call November 11, 2009 at 10 a.m. ET