Intact Financial Corporation · TSX:IFC
Intact Financial — Q1 2013 Earnings Presentation
19 slides from Intact Financial's earnings presentation, May 8, 2013
Slide 1: Building a world-class P&C insurer: Review of performance Q1-2013
Intact Financial Corporation (TSX: IFC) Building a world-class P&C insurer Review of performance Q1-2013 Wednesday, May 8th, 2013
Slide 2: Charles Brindamour, Chief Executive Officer
Charles Brindamour Chief Executive Officer
Slide 3: Q1-2013 key points
Q1-2013 key points Highlights • Net operating income per share of $1.27, or $1.02 excluding a one-time tax benefit • Combined ratio of 95.1% was above last year’s exceptional 92.3%, largely due to more seasonal weather conditions • Premium growth of 9%, bolstered by the addition of Jevco’s product s
Slide 4: The personal auto environment
The personal auto environment • Proposed Ontario budget includes a strategy to reduce both rates and costs − Reduce insurance rates by an average of 15% over a period of time − Budget provides momentum on formalizing cost containment measures discussed to date − We believe the outcome could be margi
Slide 5: Seasonal results in personal property
Seasonal results in personal property Combined Ratio 112.0% 87.8% 92.3% 83.5% 93.5% • Current accident year loss ratio in line 3% with seasonal trends 3% 3% • Continue to strive for a combined ratio 2% sustainably below 95% CAT 75% 63% 62% 53% 61% • Implemented improvements during PYD the quarter: C
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 Premium growth • Potential for increased government
Slide 7: Summary and key takeaways
Summary and key takeaways • We have a sustainable competitive advantage versus the industry due to our disciplined approach and quality operations – We remain committed to outperforming the industry ROE by at least 500 basis points • Our solid financial position enables us to take advantage of growt
Slide 8: Mark Tullis, Chief Financial Officer
Mark Tullis Chief Financial Officer
Slide 9: Q1-2013 Financial highlights
Q1-2013 Financial highlights (in $ millions, except as otherwise noted) Q1-2013 Q1-2012 Change Direct premiums written1 1,524 1,403 9% Net underwriting income 83 123 (33)% Combined ratio2 95.1% 92.3% 2.8 pts Net operating income to common shareholders $1.27 $1.34 (5)% per share3 Earnings to common s
Slide 10: Personal lines
Personal lines (in $ millions, except as otherwise noted) Q1-2013 Q1-2012 Change Combined Ratio Breakdown Personal Auto Direct premiums written1 691 621 11% 26.4% 26.8% Expense Underwriting income 48 36 33% Ratio 67.7% 68.4% Claims Combined ratio2 94.1% 95.2% (1.1) pts Ratio Q1-2013 Q1-2012 • Strong
Slide 11: Commercial lines
Commercial lines (in $ millions, except as otherwise noted) Q1-2013 Q1-2012 Change Combined Ratio Breakdown Commercial Auto Direct premiums written1 132 115 15% 30.5% 30.8% Expense Underwriting income 4 19 (79)% Ratio 66.8% 54.4% Claims Combined ratio2 97.3% 85.2% 12.1 pts Ratio Q1-2013 Q1-2012 • DP
Slide 12: High quality investment portfolio
High quality investment portfolio Net investment gains $12.5 billion – conservatively managed (in $ millions, except as otherwise noted) Note: Investment mix is net of hedging positions and financial liabilities related to investments. Q1-2013 Q1-2012 Change Fixed income securities Cash and short te
Slide 13: Financial position remains solid
Financial position remains solid • Our financial position remains solid with $744 million in excess capital and an estimated MCT of 214% • Book value per share 12% higher than a year ago • Operating ROE of 16.0% for the last 12 months • Debt-to-capital ratio of 18.5% is below our target of 20% • Rei
Slide 14: Integrations are on track
Integrations are on track AXA Canada Jevco • Integration of AXA Canada continues to • Continuing to convert policies into IFC progress very well systems • Conversion is on track and are focused • Retention has been good and we are on decommissioning the AXA systems working to re-underwrite portions
Slide 15: Strategic, operational and financial strength
Strategic, operational and financial strength • Largest P&C insurance provider in Canada • Solid financial position • Excellent long-term earnings power • Organic growth platforms easily expandable Our solid financial position and disciplined approach to the business provide a strong foundation from
Slide 16: Q2-2013 earnings call Wednesday, July 31st, 2013
Q2-2013 earnings call Wednesday, July 31st, 2013
Slide 17: Investor Relations contact information
Investor Relations contact information Dennis Westfall, CFA Maida Sit, CFA Vice President, Investor Relations Manager, Investor Relations Phone: 416.341.1464 ext 45122 Phone: 416.341.1464 ext 45153 Cell: 416.797.7828 Email: Maida.Sit@intact.net Email: Dennis.Westfall@intact.net General Contact Info
Slide 18: Forward looking statements and disclaimer
Forward looking statements and 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-l
Slide 19: 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