Intact Financial Corporation · TSX:IFC
Intact Financial — Scotiabank Financials Summit 2013
14 slides from Intact Financial's conference presentation, Sep 5, 2013
Slide 1: Intact Financial Corporation – Scotiabank Financials Summit
Intact Financial Corporation (TSX: IFC) Scotiabank Financials Summit Charles Brindamour, CEO September 5, 2013
Slide 2: Forward looking statements and disclaimer
Forward looking statements and disclaimer Certain of the statements included in this MD&A 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 s
Slide 3: 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 4: Canada's P&C insurance leader
Canada’s P&C insurance leader Who we are1 Distinct brands • Largest P&C insurer in Canada • $7 billion in direct premiums written • #1 in BC, Alberta, Ontario, Quebec, Nova Scotia • $12.3 billion cash and invested assets • Proven industry consolidator Leader in a fragmented industry Industry outperf
Slide 5: Consistent industry outperformance
Consistent industry outperformance Significant Sophisticated In-house Broker Multi- Proven Solid scale pricing and claims relationships channel acquisition investment advantage underwriting expertise distribution strategy returns 2012 metrics Five-year average loss ratios Industry IFC 76.5% Industry
Slide 6: 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 premium growth is likely to evolve at a similar pace to that of the last 12 months. • Increased government intervention in Ontario auto
Slide 7: Plan for delivering 10 points improvement in personal property
Plan for delivering 10 points improvement in personal property Reported Combined Ratio 113.6% 109.0% 96.5% 103.5% 93.5% 103.3% 8.7% 8.6% 5.9% 13.3% 12.3% 10.3% CAT CR excl. CAT and PYD 104.3% 101.2% 94.6% 93.6% 89.2% 96.6% PYD 0.6% -0.8% -4.0% -3.4% -6.0% -5.6% FY2008 FY2009 FY2010 FY2011 FY2012 H1-
Slide 8: Ontario auto environment
Ontario auto environment Ontario government’s strategy to reduce both rates and costs • Reduce insurance rates by an average of 15% over 2 years – 3% - 5% by January 2014, 8% by August 2014, for the full 15% by August 2015 • Government rolling out regulations to crack down on fraud, as well as reduc
Slide 9: Integrations are on track
Integrations are on track AXA Canada – closed September 2011 Jevco – closed September 2012 • Strong strategic fit which bolstered our • Strengthened product offering across risk selection and claims management IFC distribution to include: capabilities − Recreational vehicles • Represented $2 billion
Slide 10: Four distinct avenues for growth
Four distinct avenues for growth Firming market conditions (0-2 years) Develop existing platforms (0-3 years) • Continue to expand support to Personal lines our broker partners • Build on outperformance in auto to accelerate growth • Leverage addition of AXA • Industry premiums likely to be bolstere
Slide 11: Financial strength for growth
Financial strength for growth $12.3 billion – conservatively managed Solid balance sheet Note: Investment mix is net of hedging positions and financial liabilities related to investments. • $486 million in total excess capital Loans • MCT of 197% 3% Fixed income Cash and short term 73% • Debt-to-cap
Slide 12: A 36-month roadmap for outperformance
A 36-month roadmap for outperformance Beat industry ROE by NOIPS growth of 10% 5 points every year per year over time Pricing & Segmentation: Organic growth: 2 points 4-6% Claims management: Margin improvement: 3 points 0-3% Investments and capital Capital management/deployment: management: 2 points
Slide 13: Building on our sustainable competitive advantages
Building on our sustainable competitive advantages We have a sustainable competitive advantage versus the industry We continue our shareholder-friendly approach to capital management Our solid financial position enables us to take advantage of growth opportunities which may present themselves in a c
Slide 14: Upcoming Events
Upcoming Events: November 6th, 2013 – Q3-2013 results November 27th, 2013 – Annual Investor Day 14