Intact Financial Corporation · TSX:IFC
Intact Financial — Merger or Acquisition (September 2023)
14 slides from Intact Financial's merger presentation, Sep 6, 2023
Slide 1: Creating a leading UK Commercial Lines insurer
Creating a leading UK Commercial Lines insurer Acquisition of Direct Line Insurance Group plc’s brokered Commercial Lines operations September 6, 2023 A final base shelf prospectus containing important information relating to the securities described in this document has been filed with the securiti
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain of the statements included in this presentation about the acquisition of Direct Line Insurance Group plc’s (Direct Line) brokered Commercial Lines operations (the “Transaction”) and the issuance of shares pursuant to a bought deal public offering in Canada and in a
Slide 3: Disclaimer
Disclaimer No securities regulatory authority has either approved or disapproved the contents of this presentation. The common shares to be issued pursuant to the Offering and over-allotment option have not been, and will not be, registered under the U.S. Securities Act, or any U.S. state securities
Slide 4: Charles Brindamour
Charles Brindamour Chief Executive Officer 4
Slide 5: Acquisition of Direct Line's Brokered Commercial Lines operations
Acquisition of Direct Line’s Brokered Commercial Lines operations ✓ Enhances profitability and growth profile of UK&I through increased focus on RSA’s outperforming lines Strong strategic fit ✓ Increases RSA’s presence in attractive UK Commercial Lines market as the third largest player ✓ Strengthen
Slide 6: Increased focus on RSA's outperforming Commercial Lines platform
Increased focus on RSA’s outperforming Commercial Lines platform Share of £20B UK Commercial Lines1 Market Better positions overall UK&I2 business for outperformance Competitor 1 96.5% Mid-90s Competitor 2 Low 90s ~7% Pro forma Competitor 3 Since RSA acquisition 3 Target UK Market Competitor 4 Incre
Slide 7: Building on our strong Commercial Lines track record
Building on our strong Commercial Lines1 track record Well positioned to sustain combined ratios2 of ~90% Canada CL combined ratio2,3 UK&I CL combined ratio2,3 US CL combined ratio2,3 Since RSA Acquisition 96% 95% 95% 93% 93% 90% 91% 91% 90% 90% 89% 88% 87% 2019 2020 2021 2022 H1 2023 2021 2022 H1 2
Slide 8: Acquiring a well established and highly complementary business
Acquiring a well established and highly complementary business Strengthens distribution Deepens and expands product offering Over 125 years in 4 offices servicing business the UK market 87% •• Commercial insurance provider Trades exclusively through brokers Packages GWP • Full suite of products for
Slide 9: Louis Marcotte
Louis Marcotte Executive Vice President & Chief Financial Officer 9
Slide 10: Positioned to strengthen outperformance in UK&I Commercial Lines
Positioned to strengthen outperformance in UK&I Commercial Lines Targeting a combined ratio1 of 90% Acquired UK&I CL Commercial Lines Pro forma Year 3 Premiums Written2 2022 £1.8B (+7% YoY) £530M (+14% YoY) £2.3B Mid single-digit growth Combined ratio1 Average 2021-2022 91% 96%3 ~92% ù ~90% Regions
Slide 11: Transaction highlights
Transaction highlights • Acquisition of Direct Line’s brokered Commercial Lines operations for £520M + up to £30M earnout Transaction • Renewal rights, brands, employees, systems and premises to be transferred to RSA summary • Additional capital required to support the business to be funded through
Slide 12: Transaction structure and expected deal timeline
Transaction structure and expected deal timeline Transaction structure Expected deal timeline Transaction 6 September 2023 announcement Intact to make £520 million payment to Direct Line, reflecting 1 the franchise value and the business to be renewed onto RSA’s Direct Line balance sheet and systems
Slide 13: Transaction is aligned with our strategic roadmap
Transaction is aligned with our strategic roadmap Expand our leadership Strengthen our leading Build a Specialty position in Canada position in UK & Ireland Lines leader Expand broker (CL) Leading customer 3 out of 4 customers Specialized customer Expand experience digitally engaged Leading customer
Slide 14: Contact us
Contact us Investor Inquiries Intact Financial Corporation 700 University Avenue, Toronto, ON M5G 0A1 ir@intact.net www.intactfc.com Investor Relations Shubha Khan Vice President, Investor Relations 1 (416) 341-1464 ext. 41004 shubha.khan@intact.net Media Inquiries David Barrett Director, Media, Soc
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