Intact Financial Corporation · TSX:IFC
Intact Financial — Q3 2007 Earnings Presentation
12 slides from Intact Financial's earnings presentation, Nov 7, 2007
Slide 1: 2007 Third Quarter Financial and Operating Results
2007 Third Quarter Financial and Operating Results November 7, 2007
Slide 2: 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 3: Presenters: Claude Dussault, Charles Brindamour, Mark Tullis
Claude Dussault, President & Chief Executive Officer Charles Brindamour, Chief Operating Officer Mark Tullis, Chief Financial Officer 3
Slide 4: 2007 Q3 Highlights
2007 Q3 Highlights Financial Summary Q3 07 Q3 06 Change Direct premiums written (excluding pools, in millions) $1,091.2 $1,059.1 3.0% Written insured risks (in thousands) 1,273.1 1,242.9 2.4% Net income (in millions) $ 92.0 $ 156.8 (41.3)% Net operating income (in millions) $ 95.2 $ 132.3 (28.0)% Ea
Slide 5: Income Before Income Taxes - Reconciliation
Income Before Income Taxes - Reconciliation (in millions) Three months ended September 30 As reported in 2006 $218.7 Lower favourable prior year claims development $ (48.4) Current accident year: Lower losses from catastrophes 10.9 Higher results from Facility Association 1.4 Lower underwriting inco
Slide 6: Direct Premiums Written
1) Direct Premiums Written Quarterly Annually (in millions) (in millions) $3,906 $3,994 $1,400 $4,000 $1,091 $3,293 $3,501 $997 $1,059 $879 $915 $1,050 $3,000 +2.3% +3.0% $700 $2,000 $350 $1,000 $0 $0 Q3/03 Q3/04 Q3/05 Q3/06 Q3/07 2003 2004 2005 2006 Solid growth in direct premiums written in the th
Slide 7: Direct Premiums Written – by Lines
1) Direct Premiums Written – by Lines Personal Lines Commercial Lines (in millions) (in millions) $3,000 $2,811 $1,400 $2,657 $1,249 $1,162 $1,183 $2,500 $2,339 $1,200 $1,097 $2,196 $1,000 $2,000 $800 $1,500 +5.4% $600 -3.8% $1,000 $782 $824 $400 $277 $267 $500 $200 $- $- 2003 2004 2005 2006 Q3/06 Q
Slide 8: Invested Assets Yield
1) Invested Assets Yield 5.9% 6% 2) 5.3% 4.9% 4.9% 4.8% 5.0% 5.1% 4.8% 4% Cost-based yield Market-based yield 2% 0% 3) 4) 2003 2004 2005 2006 Q3/06 Q3/07 Invested assets yield increased due to higher dividend and interest income. 1) Pre-tax. 2) Calculation based on adjusted book value reflecting Jan
Slide 9: Sources of Earnings
Sources of Earnings (in millions) $800 $781.8 Net gains on invested assets $169.5 $658.1 and other gains $624.2 Net operating income $600 $91.9 $127.5 $400 $612.3 $532.3 $530.6 $156.8 $200 $150.5 $92.0 $6.5 $24.5 -$3.2 $144.0 $132.3 $95.2 $0 2003 2004 2005 2006 Q3/06 Q3/07 A decrease in underwriting
Slide 10: Net Underwriting Income - by Lines
Net Underwriting Income - by Lines Personal Lines Commercial Lines (in millions) (in millions) $200 $500 $162 $156 $160 $382 $400 $131 $339 $120 $300 $242 $87 $80 $200 $37 $100 $59 $40 $23 $6 $- $- 2003 2004 2005 2006 Q3/06 Q3/07 2003 2004 2005 2006 Q3/06 Q3/07 -$100 -$36 In personal lines, underwri
Slide 11: Return on Equity
1) Return on Equity 50% 40.9% 40% 31.6% 30% 20.8% 20% 16.5% 16.0% 10% 0% 2003 2004 2005 2006 Q3/07 The rolling 12-month ROE for the third quarter was 16.0%, which remains well above the long-term industry average. 1) Net income over the last 12 months divided by the average shareholders’ equity duri
Slide 12: Coming: Q4 Earnings Conference Call, February 20, 2008
Coming: February 20, 2008 at 10:00 a.m. Q4 07 Earnings Conference Call www.ingcanada.com