Intact Financial Corporation · TSX:IFC
Intact Financial — CIBC Annual Eastern Institutional Investor Conference 2008
11 slides from Intact Financial's conference presentation, September 2008
Slide 1: CIBC Annual Eastern Institutional Investor Conference
Charles Brindamour, Chief Executive Officer CIBC Annual Eastern Institutional Investor Conference September 2008
Slide 2: The leader in property & casualty insurance in Canada
The leader in property & casualty insurance in Canada • Largest P&C company in Canada with ROE performance of insurance subsidiaries compared to Canadian P&C insurance industry $4.1 billion in direct premiums written 40% • Market leader in Ontario, Alberta, Quebec and Nova Scotia 30% 10-year avg. •
Slide 3: Scale drives superior performance in personal lines
Scale drives superior performance in personal lines 2007 Automobile direct premiums written (DPW) – personal and commercial ($ millions) $2,500 $2,364 $2,000 $1,723 $1,457 $1,500 $1,144 $1,139 $1,000 $500 $0 IN G C a n a d a A v iv a C a n a d a T D M e lo c h e M o n n e x C o -o p e ra to rs S ta
Slide 4: Long-term industry outperformance in commercial
Long-term industry outperformance in commercial DPW and market share versus key competitors 2007 – ING Canada commercial non-auto Commercial property and liability combined ($ millions) net loss ratio gap versus industry (bps) 991 $1,000 Industry ING Canada 65% 794 776 59.4% $800 755 720 60% 56.5% 5
Slide 5: Benefits of scale advantage
Benefits of scale advantage Superior pricing and Strategic claims and expense underwriting management • More sophisticated pricing • Strong in-house claims expertise segmentation • 95% of claims in 2007 handled • Large proprietary experience by internal claims personnel database • Preferred provider
Slide 6: Diverse business model maximizes growth
Diverse business model maximizes growth Personal lines – 2007 direct premiums written by Our family of insurance brands distribution channel ($ millions) Affiliated distribution ING Insurance: provides network, insurance products and $333.5, services through a network of 11% 1,800 independent Direct
Slide 7: Prudently managed $7B investment portfolio
Prudently managed $7B investment portfolio Portfolio quality Portfolio mix • Investment philosophy: • Preservation of capital Other 1% • Income generation Fixed • Manage for economic value, not income accounting income Common 52% shares • More than 95% of our fixed income 25% portfolio is rated ‘A’
Slide 8: Strategic capital management
Strategic capital management Strong capital base allows us to Share buyback up to July 31, 2008 pursue our growth objectives while (in millions) returning capital to our shareholders 7.0 6.224 NCIB to buyback 6.0 up to 6.2 million 5.0 shares As of Q2-2008 (in $ millions): 4.0 1 3.165 Excess capital
Slide 9: Future consolidation in a fragmented industry
Future consolidation in a fragmented industry P&C industry in Canada is Top 20 P&C insurers Market share (by DPW in 2007) highly fragmented compared to Total = 80.6% other financial services Current environment more Canadian public ING Canada (excl. ING) 10.9% 5.9% likely to create opportunity a
Slide 10: Conclusion
Conclusion Largest property & casualty insurer in Canada • Consistent industry outperformer and consolidator • Scale advantage drives benefits that are difficult to emulate by new entrants or existing players • Disciplined pricing strategy in personal and commercial lines • Multi-channel distributio
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
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