Intact Financial Corporation · TSX:IFC
Intact Financial — Q4 2009 Earnings Presentation
12 slides from Intact Financial's earnings presentation, February 2010
Slide 1: Q4 2009 Review of performance
Q4 2009 Review of performance
Slide 2: Q4-2009 Review of performance conference call
Q4-2009 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: Q4-2009 Key points
Q4-2009 Key points Fourth quarter highlights • Solid top line growth of 4.5%, accelerating for the foruth quarter in a row • Best quarterly results of 2009 with: − Combined ratio of 94.6% driven mainly by improvements in personal lines − Net operating income per share up 30.2% on strong underwriting
Slide 4: Financial highlights
Financial highlights (in $ millions, except as otherwise noted) Q4-2009 Q4-2008 Chg 2009 2008 Chg Direct premiums written $1,011.4 $968.2 4.5% $4,274.9 $4,145.5 3.1% (excl. pools) Underwriting income $56.0 $11.0 n/a $54.0 $117.0 (53.8)% (loss)1 Combined ratio1 94.6% 98.9% (4.3)pts 98.7% 97.1% 1.6pts
Slide 5: Key drivers of change in operating income in Q4-2009
Key drivers of change in operating income in Q4-2009 (in $ millions, except as otherwise noted) Pre-tax operating income, 2008 $91.3 Key points Higher / (lower) Favourable prior year claims development 13.8 • Increase in favourable prior year claims development reflects the release of provisions ass
Slide 6: Strong underwriting performance in personal lines
Strong underwriting performance in personal lines (in $ millions, except as otherwise noted) Personal auto Q4-09 Q4-08 Chg Combined ratios* 95.9% 94.9% 102.9% 98.0% Direct premiums $474.6 $452.5 4.9% 24.4% 24.4% written 24.7% 23.6% Underwriting income $10.4 $(14.8) n/a 78.5% 73.6% 71.2% 71.3% (loss)
Slide 7: Excellent profitability in commercial auto offset by lower commercial P&C results
Excellent profitability in commercial auto offset by lower commercial P&C results (in $ millions, except as otherwise noted) Combined ratios* Commercial auto Q4-09 Q4-08 Chg 87.2% 79.8% 91.6% 70.4% Direct premiums $80.4 $77.2 4.1% 27.7% 27.3% written 28.3% 29.2% Net underwriting $23.8 $6.8 250.0% z
Slide 8: IFC's financial position remains strong
IFC’s financial position remains strong Strong balance sheet $8.1 billion in cash and invested assets Cash and Short • 231.9% MCT regulatory capital ratio; up 12.7 Loans term notes 3.3% percentage points from third quarter 2009 4.0% • Excess capital position of $858.7 million , based on 170% MCT Com
Slide 9: Composition of invested assets at December 31, 2009
Composition of invested assets at December 31, 2009 Market Unrealized % of market % of market % of market values values values net of values G/L Asset class in $ millions Q4-09 Q3-09 hedges Q4-09 Cash and cash equivalents $271 $0 3% 5% 3% Fixed income securities $4,574 $21 57% 54% 64% Preferred shar
Slide 10: Strategic, operational, financial strength
Strategic, operational, financial strength • Largest P&C insurance company with substantial scale advantage in the market • Strong financial position • Excellent long-term earnings power • Organic growth platforms easily expandable • M&A environment more conducive Disciplined pricing, underwriting,
Slide 11: 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 12: Q1-2010 Earnings conference call
Q1-2010 Earnings conference call May 5 at 10 a.m. ET