Intact Financial Corporation · TSX:IFC
Intact Financial — Q1 2024 Earnings Presentation
21 slides from Intact Financial's earnings presentation, 2024
Slide 1: Make it Intact – Q1-2024 Investor Presentation
Make it Intact INTACT FINANCIAL CORPORATION (TSX: IFC) Q1-2024 Page 1 INVESTOR PRESENTATION
Slide 2: Strategic overview; Balance sheet strength & capital management; ESG
Strategic overview Pages 3 to 11 Balance sheet strength & capital management Pages 12 & 13 ESG Pages 14 & 15 Page 2
Slide 3: A leading international provider of P&C insurance
STRATEGIC OVERVIEW A leading international provider of P&C insurance Our Purpose We are here to help people, businesses and society prosper in good times and be resilient in bad times. Our Values Leader in commercial Largest provider of P&C insurance in lines in the UK and Our Values guide our decis
Slide 4: What we are aiming to achieve
STRATEGIC OVERVIEW What we are aiming to achieve Page 4
Slide 5: Strong track record of growth and outperformance
STRATEGIC OVERVIEW Strong track record of growth and outperformance ROE1,2 outperformance Net operating income per share1,4 over time 1210 bps 1500 1490 bps 1480 1470 1460 1450 1440 1430 1420 1410 1400 1390 1380 1370 1360 1350 1340 1330 1320 1310 1300 1290 1280 bps bps 820 bps 690 bps 830 bps 710 bp
Slide 6: Our strategic roadmap
STRATEGIC OVERVIEW Our strategic roadmap Expand our leadership Strengthen our leading Build a Specialty position in Canada position in UK & Ireland Lines leader Leading broker Leading customer 3 out of 4 customers Expand broker Specialized customer Expand & customer experience digitally engaged dist
Slide 7: Leveraging our competitive advantages to deliver on objectives
STRATEGIC OVERVIEW Leveraging our competitive advantages to deliver on objectives 10% 500bps ANNUAL NOIPS Last Last G R O WTH ANNUALL Y OVER TIME 5 years1 ROE OUTPERFORMANCE 5 years2 Deep Claims expertise & Organic premium growth 4% strong supply chain network 310 bps Pricing and risk selection , Op
Slide 8: Operating ROE on solid footing
STRATEGIC OVERVIEW Operating ROE on solid footing Stable investment and distribution income deliver half of our mid-teens OROE 18.4% 17.8% 16.8% 16.6% 16.3% 14.0% 14.2% 12.9% Average OROE 12.1% 12.5% 14.6% 12.0% 11.2% Average contribution from Investment Income & Distribution 8.6% 2012 2013 2014 201
Slide 9: Expanding our leadership position in Canada
STRATEGIC OVERVIEW Expanding our leadership position in Canada On our way to serving 1 in 3 Canadians We aim to grow our DPW to $20 billion by 2027, with 5 points of combined ratio outperformance Clear scale advantage in a fragmented Canadian market Proven consolidator in Canada CANADIAN P&C 2 - TOP
Slide 10: Strengthening our leading position in the UK & Ireland
STRATEGIC OVERVIEW Strengthening our leading position in the UK & Ireland Accelerated our path to sustainable outperformance by doubling down on our commercial lines business Commercial Lines-focused UK&I segment Clear drivers of outperformance Leading Broker Optimized Risk Commercial Specialty Stro
Slide 11: Building a specialty solutions leader
STRATEGIC OVERVIEW Building a specialty solutions leader Capitalizing on a vast market opportunity, while maintaining a sub-90 combined ratio Opportunities to grow in a fragmented market Profitable & growing mix of verticals ACCESS TO OVER $375B LARGEST PLAYERS HAVE GLOBAL SPECIALTY LINES VOLUME LES
Slide 12: Maintaining a strong balance sheet to capture opportunities
BALANCE SHEET STRENGTH & CAPITAL MANAGEMENT Maintaining a strong balance sheet to capture opportunities High quality investment portfolio Prudent reserving practices Strong capital base PYD ratio2 (2014-2023) All our regulated P&C insurance subsidiaries are well capitalized by jurisdiction Fixed-inc
Slide 13: Proven and consistent capital management strategy
BALANCE SHEET STRENGTH & CAPITAL MANAGEMENT Proven and consistent capital management strategy Capital 2023 Capital Generated: +$2.1B1 Deployment Low book value per share sensitivity 3 -2% per 10% decrease in common share prices4 Manage volatility -2% per 100 bps increase in interest rates Adjusted d
Slide 14: Insurance is about people
ESG Insurance is about people Our purpose is to help people, businesses and society prosper in good times and be resilient in bad times. 3 out of 4 customers are our advocates1 4 out of 5 brokers value our specialized An enhanced digital experience expertise2 Our customers want fast, secure and Our
Slide 15: Helping society
ESG Helping society Being a most respected company is about financial outperformance and helping society. 1. Our approach to climate strategy: 2. Our approach to social impact: Our five-point strategy focuses on managing our own business impacts and This focuses on building climate resilient and eco
Slide 16: Appendix
Appendix Page 16
Slide 17: Q1-2024 IFC financial highlights
Q1-2024 IFC financial highlights Operating DPW1 (constant currency) Combined ratio1 BVPS1 $5.1B +6% 91.2% -0.7 pts (undiscounted) and 86.8% -0.6 pts (discounted) $84.76 NOIPS1 EPS OROE1 AROE1 ROE1 Total Capital Margin1 $3.63 +19% $3.68 +79% 14.7% 13.5% 10.6% $2.7B Operating net 98.6% Operating combi
Slide 18: P&C insurance industry outlook
1 P&C insurance industry outlook UK&I Commercial Lines market is firm, with rate Hard market conditions are expected increases driven by prevailing reinsurance market and continued inflationary pressures. Industry premium growth could reach a UK and EU commercial industry premium rates are Personal
Slide 19: Contact us
Contact us Investor Inquiries Intact Financial Corporation 700 University Avenue Toronto, ON M5G 0A1 ir@intact.net www.intactfc.com Investor Relations Shubha Khan Vice President, Investor Relations 1 (416) 341-1464 ext. 41004 shubha.khan@intact.net Media Inquiries David Barrett Director, Media, Soci
Slide 20: Forward-looking statements
Forward-looking statements 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-looking statemen
Slide 21: Disclaimer
Disclaimer This presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall it or any part of it for m the basis of or be relied on in connection w ith, or act as any inducement to enter into, any contract or commi