Intact Financial Corporation · TSX:IFC
Intact Financial — Bank of America Merrill Lynch 2015 Insurance Conference
15 slides from Intact Financial's conference presentation, February 2015
Slide 1: Bank of America Merrill Lynch 2015 Insurance Conference
Bank of America Merrill Lynch 2015 Insurance Conference Intact Financial Corporation (TSX:IFC) February 2015 Intact Financial Corporation
Slide 2: Forward-looking statements
Forward-looking statements 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-looking statemen
Slide 3: 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 inducement to enter into, any contract or commitm
Slide 4: Canada's P&C insurance leader
Canada’s P&C insurance leader Leader in a fragmented industry Distinct brands • Largest P&C insurer in Canada • Over $7.3 billion in direct premiums written and market capitalization of ~$12 billion • #1 in British Columbia, Alberta, Ontario, Quebec and Nova Scotia • $13.4 billion investment portfol
Slide 5: 36-month performance roadmap
36-month performance roadmap BEAT INDUSTRY ROE BY 5 POINTS NOIPS GROWTH OF 10% PER YEAR EVERY YEAR OVER TIME Investments Margin Pricing & and capital improvement: Segmentation: management: 0 – 3% 2 points 2 points Organic growth: Capital 4 – 6% management/ deployment: 2 – 4% Claims management: 3 poi
Slide 6: Consistent outperformance
Consistent outperformance Significant Sophisticated In-house Broker Multi-channel Proven Solid scale pricing and claims relationships distribution acquisition investment advantage underwriting expertise strategy returns YTD Q3-2014 outperformance Five-year average loss ratios (for the period ended S
Slide 7: Internally managed investments
Internally managed investments $13.4 billion investment portfolio Investment mix (net of hedging positions and financial liabilities related to investments, as of December 31, 2014) Objective: 160 bps Cash and short- Loans, 3% term notes, 3% of ROE outperformance Preferred shares, 9% Common equity F
Slide 8: Strategic capital management
Strategic capital management Capital management framework History of dividend growth • Strong capital base has allowed us to pursue our • We have increased our dividend each year growth objectives while returning capital to since our IPO shareholders Quarterly dividend per share • $681 million in to
Slide 9: Four avenues of growth
Four avenues of growth Personal lines • Build on outperformance in auto • Bring advantages of scale to brokers • Hard market in personal property • Optimize brand architecture Commercial lines • Double direct capabilities • Leverage our industry Firming Develop outperformance, and acquired market ex
Slide 10: Acquisition of Canadian Direct Insurance (CDI)
Acquisition of Canadian Direct Insurance (CDI) Financially Financial position Strong strategic fit compelling remains strong • Broadens direct presence • IRR estimated above for IFC 15%1 • Acquisition to be financed • through excess capital Facilitates objective to • Immediately accretive to double
Slide 11: Streamlining our brands
Streamlining our brands Broker Channel Direct Channel Growth and innovation will be accelerated in 2015: • Grey Power will be rebranded as belairdirect and the • Increase investments in advertising, technology and two operations will be united product development • Customers of Grey Power and belair
Slide 12: Our people advantage
Our people advantage Building the best insurance team Identification, development and retention of key talent is fundamental to our talent management strategy – In 2013, 22% of key talent were promoted or developed through exposure to other business units – Voluntary turnover is significantly better
Slide 13: Key takeaways
Key takeaways We have a sustainable competitive edge due to our disciplined approach and size advantage Our broad distribution platform positions us well for organic growth We have a strong financial position and a proven track record of consolidation Deep bench in place to ensure the sustainability
Slide 14: Q1-2015 earnings call and Annual Meeting of Shareholders
Q1-2015 earnings call Wednesday, May 6th, 2015 Annual Meeting of Shareholders Wednesday, May 6th, 2015 Intact Financial Corporation
Slide 15: Contact Investor Relations
Contact Investor Relations General Contact Info Dennis Westfall, CFA, MBA Vice President, Investor Relations Website: http://www.intactfc.com Phone: 416.344.8004 Click on “Investor Relations” tab Mobile: 416.797.7828 Email: dennis.westfall@intact.net Email: ir@intact.net Maida Sit, CFA Phone: Direct
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