Intact Financial Corporation · TSX:IFC
Intact Financial — Scotia Capital Financials Summit 2010
10 slides from Intact Financial's conference presentation, September 2010
Slide 1: Charles Brindamour, CEO – Scotia Capital Financials Summit
Charles Brindamour, CEO Scotia Capital Financials Summit September 2010
Slide 2: Forward-looking statements
Forward-looking statements Certain of the statements in this document 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 statements. The words
Slide 3: Canada's leader in auto, home and business insurance
Canada’s leader in auto, home and business insurance Who we are Distinct brands • Dominant P&C insurer in Canada • Over $4 billion in direct premiums written • #1 in Ontario, Québec, Alberta, Nova Scotia • Substantial size and scale advantage • 11 successful acquisitions since 1988 • $8.2 billion ca
Slide 4: We continued to outperform the industry in H1-2010
We continued to outperform the industry in H1-2010 Operating highlights: Comparison with Canadian P&C 2010 year-to-date industry1 benchmark • Net operating income of $231 million 105% Intact Top 20 or 42.7% higher than last year due to 102% 99.7% improved underwriting performance 99% 96% 94.8% • Sol
Slide 5: Strong financial position and excess capital
Strong financial position and excess capital Strong balance sheet $8.2 billion in cash and invested assets • Excess capital position of $766 million, based on 170% Loans Cash and short 4.1% term notes 3.9% MCT • As at June 30, 2010, the debt to total capital ratio was 14.6%. Based on a debt to total
Slide 6: 12-month outlook: Industry pricing environment firming up in Canada
12-month outlook: Industry pricing environment firming up in Canada • Premiums in personal lines increasing due to cost inflation Recent escalation in the costs of BI and AB claims should subside as a Personal lines result of the September Ontario auto reforms; however, we expect further rate increa
Slide 7: Ontario auto reforms are now in place
Ontario auto reforms are now in place Context Key features • Accident benefits and tort-related bodily injury cost increases • Capping medical/rehabilitation and assessment/ (AB inflation: 19% in last four years) have resulted in the examination expenses for minor injuries to $3,500. industry raisin
Slide 8: Four distinct avenues for growth
Four distinct avenues for growth Benefit from firming market conditions Develop existing platforms Personal lines • Offer Intact Insurance solutions • Ontario auto rate increases accelerating on the web • Home insurance premiums also on the rise • Expand and grow belairdirect Commercial lines and Gr
Slide 9: Recent accolades
Recent accolades Intact Insurance Highest in Customer Satisfaction among Québec Automotive Insurance Providers1 Grey Power Highest in Customer Satisfaction among Private Full-Coverage Automotive Insurance Providers1 Intact Financial Corporation Insurance Company of the Year 2010, Canada2 1. J.D. Pow
Slide 10: Conclusion
Conclusion Disciplined pricing, underwriting, investment and capital management have positioned us well for the future • Largest P&C insurance company in Canada with substantial scale advantage in the market • Strong financial position • Excellent long-term earnings power • Organic growth platforms
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