Intact Financial Corporation · TSX:IFC
Intact Financial — CIBC's 10th Annual Eastern Institutional Investor Conference 2011
13 slides from Intact Financial's conference presentation, Sep 22, 2011
Slide 1: Charles Brindamour, CEO
Charles Brindamour, CEO CIBC’s 10th Annual Eastern Institutional Investor Conference September 22, 2011
Slide 2: Forward-looking statements and disclaimer
Forward-looking statements and 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-l
Slide 3: Forward-looking statements and disclaimer
Forward-looking statements and disclaimer All of the forward-looking statements included in this presentation are qualified by these cautionary statements and those made in the “Risk Management” section of our MD&A for the year ended December 31, 2010. These factors are not intended to represent a c
Slide 4: Canada's leader in auto, home and business insurance
Canada’s leader in auto, home and business insurance Who we are1 Distinct brands • Largest P&C insurer in Canada • $6.5 billion in direct premiums written • #1 in Ontario, Quebec, Alberta, Nova Scotia • $12.3 billion cash and invested assets • Proven industry consolidator Scale advantage Industry ou
Slide 5: Consistent industry outperformance
Consistent industry outperformance Significant Sophisticated In-house claims Broker Multi-channel Proven scale pricing and expertise relationships distribution acquisition advantage underwriting strategy 2010 combined ratios Five-year average loss ratios Industry Intact 107% 80% 105.0% 75.1% Cdn. P&
Slide 6: Strong financial position and excess capital
Strong financial position and excess capital Strong balance sheet $12.3 billion in cash and invested assets1 • Excess capital of $758 million, based on 170% MCT, of which ~$400 million will be used to finance the acquisition of AXA Canada Loans Cash and short Common 3% term notes 3% • As at the end
Slide 7: We continued to outperform the industry in H1-2011
We continued to outperform the industry in H1-2011 Operating highlights: Comparison with Canadian P&C Q2-2011 results industry1 benchmark +AXA Top 20 • Net operating income per share of $0.87, 102% 100.4% despite $0.84 in losses from natural 99% catastrophes 96.7% • Q2 combined ratio of 97.0% driven
Slide 8: 12-month industry outlook
12-month industry outlook We remain well-positioned to continue outperforming the Canadian P&C insurance industry in the current environment • Industry premiums likely to increase at a similar rate as in 2010, with mid- Premium growth single digit growth in personal auto (driven by ON), upper single
Slide 9: Four distinct avenues for growth
Four distinct avenues for growth Benefit from firming market conditions Develop existing platforms Personal lines • Continue to expand support to • Industry premiums remain inadequate in ON auto our broker partners • Home insurance premiums also on the rise • Expand and grow belairdirect Commercial
Slide 10: Acquisition of AXA Canada: Building a world-class P&C insurer
Acquisition of AXA Canada: Building a world-class P&C insurer Strong strategic fit Financially compelling • Strengthens IFC’s premiums by over 40% • Management estimates IRR1 of 20% • Bolsters our risk selection and claims management • Acquisition is accretive to NOIPS2,3 in 2012; annual capabilitie
Slide 11: AXA Canada: acquisition on-track
AXA Canada: acquisition on-track • Integration planning process initiated immediately following the announcement • Numerous task forces established, comprised of employees from both IFC and AXA, charged with: − Reviewing activities, processes and systems of both companies − Identifying potential syn
Slide 12: AXA Canada: acquisition financing in place
AXA Canada: acquisition financing in place Original structure $1,300 million financing Funding from excess capital $500 million Proceeds from subscription receipts $800 million Acquisition credit facilities $1,300 million Term loan $300 million $2,600 million Preferred shares $500 million 10-yr medi
Slide 13: Conclusion: Intact Financial
Conclusion: Intact Financial Disciplined pricing, underwriting, investment and capital management have positioned us well for the future • Largest P&C insurance company in Canada • Consistent track record of industry outperformance • Strong financial position • Excellent long-term earnings power • O
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