Intact Financial Corporation · TSX:IFC
Intact Financial — Q3 2011 Earnings Presentation
16 slides from Intact Financial's earnings presentation, 2011
Slide 1: Q3-2011 Review of performance
Q3-2011 Review of performance
Slide 2: Charles Brindamour, Chief Executive Officer
Charles Brindamour Chief Executive Officer
Slide 3: Q3-2011 Key points
Q3-2011 Key points Third quarter highlights • Net operating income to common shareholders per share of $0.97 (up 23% YoY), driven by very strong underwriting results from our auto businesses • Q3 combined ratio of 94.2%, 2.4 points better than last year, despite $53 million in catastrophe losses • P
Slide 4: Industry overview
Industry overview We remain well-positioned to continue outperforming the Canadian P&C insurance industry in the current environment • Industry premiums are likely to increase at a similar rate as in 2010, with Premium growth mid single digit growth in personal auto (driven by Ontario), upper single
Slide 5: AXA integration update
AXA integration update • People-related decisions have been made: − Senior management team announced in late September; − Overall team of more than 10,000 employees essentially in place. • Announced sale of AXA Canada’s life insurance business: − Allows us to focus on the parts of the business to wh
Slide 6: Conclusion
Conclusion • The resilience of our company was illustrated during the quarter: − Combined ratio of 94.2%, despite $53 million in catastrophe losses − Net operating income to common shareholder per share of $0.97 − Ontario auto results much improved − Successful progress with AXA Canada integration G
Slide 7: Mark Tullis, Chief Financial Officer
Mark Tullis Chief Financial Officer
Slide 8: Financial highlights
Financial highlights (in $ millions, except as otherwise noted) Q3-2011 Q3-2010 Change YTD 2011 YTD 2010 Change Direct premiums written 1,226 1,206 2% 3,523 3,438 2% Net underwriting income 65 37 76% 155 172 (10)% Combined ratio 94.2% 96.6% (2.4) pts 95.2% 94.5% 0.7 pts Net operating income to $0.97
Slide 9: Significantly improved results in personal auto
Significantly improved results in personal auto (in $ millions, except as otherwise noted) Combined ratios Personal Auto Q3-2011 Q3-2010 Change 96.3% 86.4% Direct premiums 23.2% written 622 626 (1)% 23.8% Underwriting 62.6% 73.1% 76 20 280% income Q3-2011 Q3-2010 Combined ratio 86.4% 96.3% (9.9) pts
Slide 10: Commercial lines growth solid
Commercial lines growth solid (in $ millions, except as otherwise noted) Combined ratios Commercial auto Q3-2011 Q3-2010 Change 82.8% 80.5% Direct premiums 83 79 5% 28.3% 28.7% written Underwriting income 15 16 (6)% 54.5% 51.8% Combined ratio 82.8% 80.5% 2.3 pts Q3-2011 Q3-2010 Claims ratio Expense
Slide 11: High quality investment portfolio
High quality investment portfolio Net investment gains (losses) $11.8 billion in investments (in $ millions, except as otherwise noted) Cash and short Loans, 4% term notes, 2% Debt Securities Q3 -11 Q3 -10 Change Common shares, 9% Gains (losses) on fixed income securities (1) 15 (16) & related deriv
Slide 12: Financial position remains strong
Financial position remains strong • Our financial position remains strong with $534 million in excess capital; despite allocating ~$400 million toward the AXA acquisition. We ended the quarter with an MCT of 202%. • We believe our capital levels are appropriate given likely headwinds, particularly f
Slide 13: Realizing the benefits of the acquisition
Realizing the benefits of the acquisition • AXA Canada policies are now being written on IFC systems – important precursor to realizing benefits of the deal. • We expect $100 million in annual after-tax synergies (in millions) comprised of: AXA Canada Book Value $1,490 September 23, 2011 − System re
Slide 14: Strategic, operational and financial strength
Strategic, operational and financial strength • Largest P&C insurance company in Canada • Strong financial position • Excellent long-term earnings power • Organic growth platforms easily expandable Disciplined pricing, underwriting, investment and capital management have positioned us well for the f
Slide 15: Forward-looking statement disclaimer
Forward-looking statement disclaimer 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-lookin
Slide 16: IFC Investor Day and Q4-2011 earnings call dates
IFC Investor Day Tuesday November 15, 2011 Q4-2011 Earnings conference call Wednesday February 8, 2012