Slide 1: Q1-2012 Review of performance
Q1-2012 Review of performance
Slide 2: Charles Brindamour, Chief Executive Officer
Charles Brindamour Chief Executive Officer
Slide 3: Q1-2012 Key points
Q1-2012 Key points First quarter highlights • Net operating income per share of $1.34, up 47% versus Q1-2011 • Combined ratio of 92.3%, reflecting exceptional underwriting results helped by mild winter conditions • On an adjusted basis, EPS of $1.59 (up 11% YoY) • Premium growth of nearly 50% for a
Slide 4: Industry outlook for 2012
Industry outlook for 2012 We remain well-positioned to continue outperforming the Canadian P&C insurance industry in the current environment • Industry premiums are likely to increase at a similar rate as in 2011: – Mid single digit growth in personal auto (driven by Ontario) – Upper single digit gr
Slide 5: Conclusion
Conclusion • A solid start to the year: − Underwriting remained strong with a combined ratio of 92.3% − Net operating income per share of $1.34 up 47% − Strong customer retention with AXA Canada integration Given the quality of our operational platforms, the flexibility provided by our strong financ
Slide 6: Mark Tullis, Chief Financial Officer
Mark Tullis Chief Financial Officer
Slide 7: Financial highlights
Financial highlights (in $ millions, except as otherwise noted) Q1-2012 Q1-2011 Change Direct premiums written 1,403 943 49% Underwriting income 123 58 112% Combined ratio 92.3% 94.6% (2.3) pts Net operating income per share to common $1.34 $0.91 47% shareholders Earnings per share to common $1.33 $
Slide 8: Continued improvement in personal lines
Continued improvement in personal lines (in $ millions, except as otherwise noted) Combined ratios Personal Auto Q1-2012 Q1-2011 Change 95.2% 97.7% 26.8% 25.3% Direct premiums written 621 459 35% 68.4% 72.4% Underwriting income 36 12 200% Q1-2012 Q1-2011 Combined ratio 95.2% 97.7% (2.5) pts Claims r
Slide 9: Commercial lines growth solid
Commercial lines growth solid (in $ millions, except as otherwise noted) Combined ratios Commercial auto Q1-2012 Q1-2011 Change 85.2% 91.7% Direct premiums 29.5% 115 75 53% 30.8% written 62.2% Underwriting income 19 6 217% 54.4% Combined ratio 85.2% 91.7% (6.5) pts Q1-2012 Q1-2011 Claims ratio Expen
Slide 10: High quality investment portfolio
High quality investment portfolio Net investment gains (losses) $11.5 billion in investments (in $ millions, except as otherwise noted) Cash and short Loans, 3% term notes, 3% Debt Securities Q1 -12 Q1 -11 Change Common shares, 10% Gains on fixed income securities 10 1 9 & related derivatives Prefer
Slide 11: Realizing the benefits of the acquisition
Realizing the benefits of the acquisition • AXA Canada policies are being written on IFC systems • We continue to target $100 million in annual after-tax synergies by the second half of 2013 − $36 million run-rate already secured in 2012 − Targeting $50 million run-rate by the end of 2012 • Recorded
Slide 12: Strategic, operational and financial strength
Strategic, operational and financial strength • Largest provider of P&C insurance in Canada • Strong financial position • Excellent long-term earnings power • Organic growth platforms easily expandable Disciplined pricing, underwriting, investment and capital management have positioned us well for t
Slide 13: Forward-looking statement disclaimer
Forward-looking statement disclaimer 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-lookin
Slide 14: Q2-2012 Earnings conference call Wednesday August 1, 2012
Q2-2012 Earnings conference call Wednesday August 1, 2012