Intact Financial Corporation · TSX:IFC
Intact Financial — Merger or Acquisition (May 2017)
14 slides from Intact Financial's merger presentation, May 2, 2017
Slide 1: Proposed Acquisition of OneBeacon
Proposed Acquisition of OneBeacon Intact Financial Corporation (TSX: IFC) Building a World-Class P&C Insurer May 2, 2017 A final base shelf prospectus of Intact Financial Corporation (the “Company”) dated September 10, 2015 (the “final base shelf prospectus”) containing important information relatin
Slide 2: Forward-looking Statements
Forward-looking Statements From time to time, the Company makes written and/or oral forward-looking statements, including in this presentation. In addition, our representatives may make forward-looking statements orally to analysts, investors, the media and others. All such statements are made pursu
Slide 3: Disclaimer
Disclaimer An investment in the subscription receipts of the Company described in this presentation is subject to a number of risks that should be considered by a prospective purchaser. See, for example, the risk factors set out under the “Risk Management” sections of management’s discussion and ana
Slide 4: Building a World-Class P&C Insurer
Building a World-Class P&C Insurer Financially Compelling & Conservatively Strong Strategic Rationale Structured • Creating a leading North American specialty insurer with over C$2 billion in annual specialty lines • NOIPS neutral in year 1 and mid-single digit premiums accretive in 24 months • Focu
Slide 5: OneBeacon: Unique Pure-Play Specialty Lines Insurer
OneBeacon: Unique Pure-Play Specialty Lines Insurer • OneBeacon is a Bermuda-domiciled company operating in 2016 GPW1 by Line of Business the US and focused on specialty insurance Other Professional Lines Environmental 3% 3% Specialty Property Financial Institutions • Offers a range of specialty
Slide 6: US Small to Mid-Size Commercial & Specialty Lines: A Good Strategic Entry Point
US Small to Mid-Size Commercial & Specialty Lines: A Good Strategic Entry Point The U.S. is the Largest P&C Market Globally Rationale for Intact’s Entry into the US U.S. is the Largest P&C Insurance Market Globally1 (US$ billions) U.S. Commercial & Specialty Lines: (Market Size Based on 2015 Premium
Slide 7: Complementary Expertise Positions Us to Drive Cross Market Synergy
Complementary Expertise Positions Us to Drive Cross Market Synergy Financial Entertainment Environmental Institutions Accident Technology Import expertise and expand product offering in Canada Cross-Border 1. Ability for both Intact and OneBeacon to service domestic clients that do business in both
Slide 8: Combining Expertise, Operational Excellence & Capabilities
Combining Expertise, Operational Excellence & Capabilities Intact’s Specialty Insurance Expertise OneBeacon’s Experienced Management 90.3% 5-year average combined ratio Strong and proven leadership with Mike Miller, President & CEO, in place since 2006, with prior experience at St-Paul Travelers and
Slide 9: Improved Business Mix & Geographic Diversification
Improved Business Mix & Geographic Diversification + + DPW by LOB (C$8.3 billion) DPW by LOB (C$9.9 billion) DPW by Country (C$9.9 billion) 17% 83% Specialty: $628 million Specialty: $2.3 billion • Provides a more balanced portfolio by line of business • Expands presence in attractive Specialty Line
Slide 10: Financially Compelling & Conservatively Structured
Financially Compelling & Conservatively Structured US$18.10 per OneBeacon share = US$1.7 billion1 Purchase Price Total C$2.3 billion (C$2.4 billion including transaction costs) Purchase Metrics P/BV2 = 1.65x | P/E3 = 15.8x Accretive to BVPS by 4.5% | Estimated IRR in excess of 15%4 Transaction Econo
Slide 11: Building a World-Class P&C Insurer
Building a World-Class P&C Insurer Entry into attractive segment of largest global Commercial P&C Market Improved diversification while strengthening our Commercial and Specialty Lines capabilities Leveraging combined expertise to provide significant growth and value creation opportunity Financially
Slide 12: Contact Us
Contact Us General Inquiries Investor Relations Inquiries Intact Financial Corporation ir@intact.net 700 University Avenue 1 (416) 941-5336 Toronto, ON M5G 0A1 1-866-778-0774 (toll-free in N.A.) 1 (416) 341-1464 1-877-341-1464 (toll-free in N.A.) Samantha Cheung info@intact.net Vice President, Inves
Slide 13: Appendices
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Slide 14: Appendix: A Strong Track Record to Build On
Appendix: A Strong Track Record to Build On Proven Acquisition Track Record Track Record of Generating Long-Term Value IFC Total Return S&P/TSX Composite Total Return CANADA 300% +17.6% 1998 2001 2003 2006 2009 2011 2012 2014 2015 Total shareholder return 250% CAGR 2009-2016 IRR >20% >25% n.d.1 15%2