Intact Financial Corporation · TSX:IFC
Intact Financial — Q2 2008 Earnings Presentation
13 slides from Intact Financial's earnings presentation, Aug 13, 2008
Slide 1: 2008 Second quarter Financial and operating results
2008 Second quarter Financial and operating results Wednesday August 13, 2008
Slide 2: Presenters
Presenters Charles Brindamour, Chief Executive Officer Mark Tullis, Chief Financial Officer 2
Slide 3: Q2-2008 highlights
Q2-2008 highlights • Sound underwriting performance this quarter despite severe seasonal storms in Central Canada • Combined ratios below 90% in all lines of business except personal property • Underwriting income increased $16.2 million year-over- year, excluding catastrophes, reflecting strong exe
Slide 4: Q2-2008 highlights
Q2-2008 highlights Financial summary (in $ millions, except as otherwise noted) Q2-2008 Q2-2007 Change Written insured risks (thousands) 1,380.6 1,399.7 (1.4)% Direct premiums written (excluding pools) 1,216.7 1,209.8 0.6% Net underwriting income (excluding MYA) 43.4 53.2 (18.4)% Combined ratio (exc
Slide 5: Changes in pre-tax income – reconciliation
Changes in pre-tax income – reconciliation (in $ millions, except as otherwise noted) Q2-2008 YTD 2008 Pre-tax operating income, as reported in 2007 158.0 301.6 Higher favourable prior year claims development 35.7 24.3 Current accident year: Lower current accident year underwriting income (22.7) (17
Slide 6: Direct premiums written
1) Direct premiums written DPW quarterly DPW year-to-date (in $ millions) (in $ millions) $1,400 $1,210 $1,217 $3,000 $1,091 $961 $860 $2,077.0 $2,056.1 $1,050 $846 $2,000 $700 $1,000 $350 $0 $0 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Q2-08 2007 2008 1) Excluding pools Direct premiums written increased slight
Slide 7: Direct premiums written – by lines
1) Direct premiums written – by lines Personal lines Commercial lines (in $ millions) (in $ millions) $2,811 $2,962 $3,000 $2,657 $1,400 $1,249 $1,162 $1,183 $1,146 $2,500 $2,339 $1,200 $1,000 $2,000 + 1.4% $800 - 1.5% $1,500 $600 $879.3 $891.2 $1,000 $330.5 $325.5 $400 $500 $200 $- $- 2004 2005 200
Slide 8: Net underwriting income (loss) – by lines
Net underwriting income (loss) – by lines 1) 1) Personal lines Commercial lines (in $ millions) (in $ millions) $450 $180 $162 $400 $382 $156 $339 $160 $350 $140 $131 $300 $120 $242 $96 $250 $100 $200 $80 + 21.4% $150 $60 $93 - 62.4% $34.1 $100 $40 $28.1 $50 $25.0 $9.4 $20 $- $- 2004 2005 2006 2007
Slide 9: Underwriting ratios (excluding MYA) – by lines
Underwriting ratios (excluding MYA) – by lines Personal auto Commercial auto 89.9% 89.2% 93.6% 95.0% 91.6% 86.9% 93.3% 89.8% 25.1% 24.8% 25.5% 25.2% 27.7% 26.7% 28.6% 27.6% 64.8% 64.4% 68.1% 69.8% 63.9% 60.2% 64.7% 62.2% Q2-07 Q2-08 YTD 2007 YTD 2008 Q2-07 Q2-08 YTD 2007 YTD 2008 Claims ratio Expens
Slide 10: Return on equity
Return on equity 50% 40.9% 40% 31.6% 30% 20.8% 20% 15.4% 13.0% 10.3% 10% 0% 2004 2005 2006 2007 Q1-08 Q2-08 ROE equals net income over the last 12 months divided by the average shareholders’ equity during that same period. The change in ROE reflects lower operating income and realized equity gains.
Slide 11: Update on our share buyback program
Update on our share buyback program • Up to 6.2 million outstanding shares over 12-month period, ending Progress up to July 31, 2008 February 2009 (in millions of shares) • During this quarter 2,000,379 shares 6.224 repurchased at an average purchase 6.0 price of $38.97 5.0 • As at July 31, 2008, th
Slide 12: 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 13: Q3 2008 Earnings conference call – November 12, 2008 at 10:00 a.m. ET
Q3 2008 Earnings conference call – November 12, 2008 at 10:00 a.m. ET www.ingcanada.com