Intact Financial Corporation · TSX:IFC
Intact Financial — Q4 2024 Earnings Presentation
21 slides from Intact Financial's earnings presentation, February 2025
Slide 1: Make it Intact – Q4-2024 Investor Presentation
Make it Intact INTACT FINANCIAL CORPORATION (TSX: IFC) Q4-2024 Page 1 INVESTOR PRESENTATION
Slide 2: Strategic overview; Balance sheet strength & capital management; ESG
Strategic overview Pages 3 to 11 Balance sheet strength & capital management Pages 12 & 13 ESG Pages 14 & 15 Page 2
Slide 3: A leading international provider of P&C insurance
STRATEGIC OVERVIEW A leading international provider of P&C insurance Our Purpose We are here to help people, businesses and society prosper in good times and be resilient in bad times. Our Values Leader in commercial Largest provider of P&C insurance in lines in the UK and Our Values guide our decis
Slide 4: Our Strategic Objectives: What we are aiming to achieve
STRATEGIC OVERVIEW Our Strategic Objectives: What we are aiming to achieve * Page 4 * 2019 baseline
Slide 5: Strategic roadmap: How we intend to achieve our objectives
STRATEGIC OVERVIEW Strategic roadmap: How we intend to achieve our objectives Expand our leadership Strengthen our leading Build a Specialty position in Canada position in UK & Ireland Lines leader Leading 3 out of 4 Leading broker Specialized Expand broker Expand customer customers & customer Custo
Slide 6: Strong track record of growth and outperformance
STRATEGIC OVERVIEW Strong track record of growth and outperformance ROE1,2,3 outperformance Net operating income per share1,4 over time 1210 bps 1500 1490 bps 1480 1470 1460 1450 1440 1430 1420 1410 1400 1390 1380 1370 1360 1350 1340 1330 1320 1310 1300 1290 1280 bps bps 690 bps 830 bps 650 bps 710
Slide 7: Our roadmap is built to deliver on our objectives
STRATEGIC OVERVIEW Our roadmap is built to deliver on our objectives 10% 500bps NOIPS Strategic ANNUAL Historical GROWTH ANNUALLY OVER TIME Contribution ROE OUTPERFORMANCE Contribution Organic Premium growth ⅓ Claims management ⅓ Pricing & risk selection ⅓ Operating margin expansion ⅓ Distribution ⅓
Slide 8: Operating ROE on solid footing
STRATEGIC OVERVIEW Operating ROE on solid footing Stable investment and distribution income deliver half of our mid-teens OROE1 18.4% 17.8% 16.6% 16.5% 14.0% 14.2% 12.9% 14.7% 12.1% 12.5% OROE 10-yr average 12.0% 8.6% Average contribution from Investment Income & Distribution 2015 2016 2017 2018 201
Slide 9: Expanding our leadership position in Canada
STRATEGIC OVERVIEW Expanding our leadership position in Canada On our way to serving 1 in 3 Canadians. We aim to grow our DPW to $20 billion by 2027, with 5 points of combined ratio outperformance. Clear scale advantage in a fragmented Canadian market Proven consolidator in Canada CANADIAN P&C 2 - T
Slide 10: Strengthening our leading position in the UK & Ireland
STRATEGIC OVERVIEW Strengthening our leading position in the UK & Ireland Accelerated our path to sustainable outperformance by doubling down on our commercial lines business Commercial Lines-focused UK&I segment Clear drivers of outperformance Leading Broker Optimized Risk Commercial 61% Specialty
Slide 11: Building a global specialty solutions leader
STRATEGIC OVERVIEW Building a global specialty solutions leader Capitalizing on a vast market opportunity, while maintaining a sub-90 combined ratio Opportunities to grow in a fragmented market Profitable & growing mix of verticals ACCESS TO OVER $460B LARGEST PLAYERS HAVE GLOBAL SPECIALTY LINES VOL
Slide 12: Maintaining a strong balance sheet to capture opportunities
BALANCE SHEET STRENGTH & CAPITAL MANAGEMENT Maintaining a strong balance sheet to capture opportunities High quality investment portfolio1 Prudent reserving practices Strong capital base3 Favourable PYD ratio2 All our regulated P&C insurance subsidiaries Debt securities are well capitalized by juris
Slide 13: Proven and consistent capital management strategy
BALANCE SHEET STRENGTH & CAPITAL MANAGEMENT Proven and consistent capital management strategy Capital 2024 Capital Generated: +$2.6B1 Deployment Low book value per share sensitivity3 (2)% per 10% decrease in common share prices Manage volatility (2)% per 100 bps increase in interest rates Adjusted d
Slide 14: Our purpose is to help people, businesses and society prosper in good times and be resilient in bad times
ESG Our purpose is to help people, businesses and society prosper in good times and be resilient in bad times 3 out of 4 customers are our advocates1 4 out of 5 brokers value our specialized An enhanced digital experience expertise2 Our customers want fast, secure and 71% 64% 67% 81% Canada U.K. Ire
Slide 15: Being a most respected company is about financial outperformance and helping society
ESG Being a most respected company is about financial outperformance and helping society 1. Our approach to climate strategy: 2. Our approach to social impact: Our five-point strategy focuses on managing our own business impacts and This focuses on building climate resilient and economically resilie
Slide 16: Appendix
Appendix I Page 16
Slide 17: Ended 2024 with an excellent quarter – Q4 2024 financial highlights
Ended 2024 with an excellent quarter – Q4 2024 financial highlights Operating DPW1 (constant currency) Combined ratio1,2 BVPS1 $5.8B +5% 86.5% (3.6) pts $92.67 +13% y-o-y NOIPS1,3 EPS3 OROE1 AROE1 ROE1 Total Capital Margin1 $4.93 +23% $3.58 +29% 16.5% 16.8% 14.2% $2.9B (over the last 12 months) CAY
Slide 18: P&C insurance industry outlook
1 P&C insurance industry outlook Hard market conditions are expected to prevail. UK and EU Commercial Lines market conditions remain favourable overall, but with pressures in large accounts. Industry premium growth expected in the Industry premium rates are expected to grow at a mid- Personal Auto l
Slide 19: Contact us
Contact us Investor Inquiries Intact Financial Corporation 700 University Avenue Toronto, ON M5G 0A1 ir@intact.net www.intactfc.com Investor Relations Geoff Kwan Deputy Senior Vice President, Finance and Chief Investor Relations Officer 1 866 440-8300 ext. 20022 ir@intact.net Media Inquiries Carolin
Slide 20: Forward-looking statements
Forward-looking statements Certain of the statements included in this MD&A 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. The
Slide 21: 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