Intact Financial Corporation · TSX:IFC
Intact Financial — Q1 2008 Earnings Presentation
12 slides from Intact Financial's earnings presentation, May 14, 2008
Slide 1: 2008 First Quarter Financial and Operating Results
2008 First Quarter Financial and Operating Results Wednesday, May 14, 2008
Slide 2: Presenters
Presenters Charles Brindamour, Chief Executive Officer Mark Tullis, Chief Financial Officer Q&A session with: Martin Beaulieu, Senior VP, Personal Lines Peter Weightman, Senior VP, Commercial Lines 2
Slide 3: Q1-2008 highlights
Q1-2008 highlights Financial summary (in $ millions, except as otherwise noted) Q1-2008 Q1-2007 Change Written insured risks (thousands) 945.8 950.4 (0.5)% Direct premiums written (excluding pools) 860.3 846.3 1.7% Underwriting income (excluding MYA) 0.8 38.7 (97.9)% Combined ratio (excluding MYA) 9
Slide 4: Changes in pre-tax income – reconciliation
Changes in pre-tax income – reconciliation (in $ millions, except as otherwise noted; excluding MYA) Pre-tax operating income, as reported in 2007 143.7 Lower favourable prior year claims development (11.6) Current accident year: Higher current accident year underwriting income 5.4 Higher losses fro
Slide 5: Direct premiums written
1) Direct premiums written DPW quarterly DPW annually (in $ millions) (in $ millions) $4,109 $1,400 $3,906 $3,994 $1,210 $4,000 $1,091 $961 $3,501 $860 $1,050 $846 $3,000 $700 $2,000 $350 $1,000 $0 $0 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 2004 2005 2006 2007 1) Excluding pools Direct premiums written increa
Slide 6: Direct premiums written – by lines
1) Direct premiums written – by lines Personal lines Commercial lines (in $ millions) (in $ millions) $2,962 $3,000 $2,811 $1,400 $2,657 $1,249 $1,162 $1,183 $1,146 $2,500 $2,339 $1,200 $2,000 $1,000 $800 $1,500 + 2.4% - 0.2% $600 $1,000 $590.2 $604.5 $400 $256.2 $255.8 $500 $200 $- $- 2004 2005 200
Slide 7: Net underwriting income (loss) – by lines
Net underwriting income (loss) – by lines 1) 1) Personal lines Commercial lines (in $ millions) (in $ millions) $180 $500 $162 $156 $400 $339 $382 $140 $131 $300 $96 $100 $242 $200 $60 + $18 - $56 $93 $100 $21 $36 -$20 $20 $3 $- 2004 2005 2006 2007 Q1-07 Q1-08 2004 2005 2006 2007 Q1-07 Q1-08 -$20 -$
Slide 8: Market-based yield
Market-based yield 6% 5.1% 5.0% 5.1% 5.1% 5.1% 5.1% 4.8% 4% Market-based yield 2% 0% 2006 2007 Q1-07 Q2-07 Q3-07 Q4-07 Q1-08 Market-based yield is a non-GAAP measure. The market-based yield was 5.1% this quarter, a slight increase from 5.0% in the same quarter last year. 8
Slide 9: Return on equity
Return on equity 50% 40.9% 40% 31.6% 30% 20.8% 19.4% 20% 15.4% 13.0% 10% 0% 2004 2005 2006 2007 Q1-07 Q1-08 ROE equals net income over the last 12 months divided by the average shareholders’ equity during that same period. ROE for the 12-month period ending March 31, 2008 was 13.0% compared to 19.4%
Slide 10: Update on our share buyback program
Update on our share buyback program • Up to 6.2 million outstanding shares over 12 month period, ending February Progress up to April 30, 2008 2009 (in millions) 7.0 • 1.065 million shares purchased for 6.0 6.224 cancellation up to April 30, 2008 – 5.0 which is equivalent to 17.1% of the 4.0 planned
Slide 11: Forward-looking statement disclaimer
Forward-looking statement disclaimer Certain of the statements contained in this presentation about our 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 stateme
Slide 12: Q2 2008 Earnings conference call – August 13, 2008 at 10:00 a.m.
Q2 2008 Earnings conference call – August 13, 2008 at 10:00 a.m. www.ingcanada.com