Intact Financial Corporation · TSX:IFC
Intact Financial — Q4 2011 Earnings Presentation
15 slides from Intact Financial's earnings presentation, February 2012
Slide 1: Q4-2011 Review of performance
Q4-2011 Review of performance
Slide 2: Charles Brindamour, Chief Executive Officer
Charles Brindamour Chief Executive Officer
Slide 3: Q4-2011 Key points
Q4-2011 Key points Fourth quarter highlights • Net operating income per share of $1.14, 61% higher than Q4-2010 • Combined ratio of 92.7%, reflecting strong underwriting results across the company • Premium growth of nearly 50%, bolstered by the addition of AXA Canada and a rebound in organic growth
Slide 4: Industry outlook for 2012
Industry outlook for 2012 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 2011: – Mid single digit growth in personal auto (driven by Ontario) – Upper single digit gr
Slide 5: Conclusion
Conclusion • A strong end to a solid year: − Combined ratio of 92.7% in Q4 and 94.4% in 2011 − Net operating income per share up 61% in Q4 and up 12% in 2011 − Successful progress with AXA Canada integration Given the quality of our operational platforms, the flexibility provided by our strong finan
Slide 6: Mark Tullis, Chief Financial Officer
Mark Tullis Chief Financial Officer
Slide 7: Financial highlights
Financial highlights (in $ millions, except as otherwise noted) Q4-2011 Q4-2010 Change FY 2011 FY 2010 Change Direct premiums written 1,576 1,060 49% 5,099 4,498 13% Net underwriting income 118 21 462% 273 193 41% Combined ratio 92.7% 98.0% (5.3) pts 94.4% 95.4% (1.0) pts Net operating income to com
Slide 8: Significantly improved results in personal lines
Significantly improved results in personal lines (in $ millions, except as otherwise noted) Combined ratios Personal Auto Q4-2011 Q4-2010 Change 103.0% 93.3% Direct premiums written 664 494 34% Underwriting 52 (18) 389% income Combined ratio 93.3% 103.0% (9.7) pts • DPW growth mainly from the additi
Slide 9: Commercial lines growth solid
Commercial lines growth solid (in $ millions, except as otherwise noted) Combined ratios Commercial auto Q4-2011 Q4-2010 Change 93.0% 93.9% Direct premiums 130 85 53% written Underwriting income 10 6 67% Combined ratio 93.0% 93.9% (0.9) pts • Growth reached 53% versus Q4-2010 primarily reflecting th
Slide 10: 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 term notes, 4% Loans, 3% Debt Securities Q4 -11 Q4 -10 Change Common shares, 9% Gains (losses) on fixed income (7) 12 (19) securities & related deriv
Slide 11: Financial position remains solid
Financial position remains solid • Our financial position remains solid with $435 million in excess capital and book value per share of $29.73, 12% higher than a year ago. • We believe our capital levels are appropriate given potential headwinds from volatility in equity markets and interest rates.
Slide 12: Realizing the benefits of the acquisition
Realizing the benefits of the acquisition • AXA Canada policies are now being written on IFC systems. • We continue to target $100 million in annual after-tax synergies by end of 2013. − $18 million run-rate at the end of 2011 − Targeting $50 million run-rate by the end of 2012 • Recorded $42 millio
Slide 13: Strategic, operational and financial strength
Strategic, operational and financial strength • Largest P&C insurance company in Canada • Solid 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 fu
Slide 14: 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 15: Q1-2012 Earnings conference call
Q1-2012 Earnings conference call Wednesday May 2, 2012