Slide 1: Q2-2011 Review of performance
Q2-2011 Review of performance
Slide 2: Q2-2011 Review of performance conference call
Q2-2011 Review of performance conference call Charles Brindamour Chief Executive Officer Mark Tullis Chief Financial Officer Martin Beaulieu SVP, Personal lines Byron Hindle SVP, Commercial lines 2
Slide 3: Charles Brindamour, Chief Executive Officer
Charles Brindamour Chief Executive Officer
Slide 4: Q2-2011 Key points
Q2-2011 Key points Second quarter highlights • Net operating income per share of $0.87, despite $0.84 in losses from natural catastrophes • Q2 combined ratio of 97.0% driven by very strong underwriting results from our auto businesses • DPW growth of 2% in personal lines reflects slower growth in ou
Slide 5: 12-month industry outlook
12-month industry outlook We remain well-positioned to continue outperforming the Canadian P&C insurance industry in the current environment • Industry premiums likely to increase at a similar rate as in 2010, with mid- Premium growth single digit growth in personal auto (driven by ON), upper single
Slide 6: AXA Canada acquisition on-track
AXA Canada acquisition on-track • Integration planning process initiated immediately following the announcement • Numerous task forces established, comprised of employees from both IFC and AXA, charged with: − Reviewing activities, processes and systems of both companies − Identifying potential syne
Slide 7: We remain confident of our prospects
We remain confident of our prospects • The resilience of our company was illustrated during the quarter: − Combined ratio of 97.0%, despite more than $100 million in losses from natural catastrophes − Net operating income per share of $0.87 − Ontario auto results much improved − AXA Canada acquisiti
Slide 8: Mark Tullis, Chief Financial Officer
Mark Tullis Chief Financial Officer
Slide 9: Financial highlights
Financial highlights (in $ millions, except as otherwise noted) Q2-2011 Q2-2010 Change YTD-2011 YTD-2010 Change Direct premiums written $1,354 $1,318 3% $2,297 $2,232 3% Net underwriting income $33 $66 (50)% $91 $135 (33)% Combined ratio 97.0% 93.7% 3.3 pts 95.8% 93.5% 2.3 pts Net operating income $
Slide 10: Significantly improved results in personal auto
Significantly improved results in personal auto (in $ millions, except as otherwise noted) Combined ratios Personal auto Q2-2011 Q2-2010 Change 95.7% 85.7% Direct premiums written $674 $665 1% 26.4% 26.4% Underwriting income $79 $23 244% 59.3% 69.3% Combined ratio 85.7% 95.7% (10) pts Q2-2011 Q2-201
Slide 11: Continued solid results in commercial lines
Continued solid results in commercial lines (in $ millions, except as otherwise noted) Q2-2011 Q2-2010 Change Combined ratios Commercial auto 75.4% 74.6% Direct premiums written $108 $101 7% 31.9% 31.0% Net underwriting income $21 $20 5% 43.5% 43.6% Combined ratio 75.4% 74.6% 0.8 pts Q2-2011 Q2-2010
Slide 12: High quality investment portfolio
High quality investment portfolio Net investment gains (losses) $8.6 billion in investments (in $ millions, except as otherwise noted) Cash and short Q2-11 Q2-10 Change Loans term notes 1% Debt securities 4% Gains on fixed income securities & Common (1) (1) - shares 13% related derivatives Equity se
Slide 13: 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 • AXA Canada acquisition expected to close in the fall Disciplined pricing, underwriting, investment a
Slide 14: Forward-looking statement disclaimer
Forward-looking statement disclaimer Certain of the statements in this document 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 statements.
Slide 15: Q3-2011 Earnings conference call
Q3-2011 Earnings conference call Wednesday November 2, 2011