Intact Financial Corporation · TSX:IFC
Intact Financial — Scotiabank Financials Summit 2012
12 slides from Intact Financial's conference presentation, Sep 6, 2012
Slide 1: Intact Financial Corporation
Intact Financial Corporation Charles Brindamour, CEO Scotiabank Financials Summit September 6, 2012
Slide 2: Forward looking statements and disclaimer
Forward looking statements and disclaimer Certain of the statements included in this Presentation about Intact Financial Corporation’s, its subsidiaries’ and affiliated companies’ (collectively, the “Company”) current and future plans, expectations and intentions, results, levels of activity, perfor
Slide 3: Forward looking statements and disclaimer
Forward looking statements and 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 form the basis of or be relied on in connection with, or act as any inducem
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 • $7.0 billion in direct premiums written • #1 in BC, Alberta, Ontario, Quebec, Nova Scotia • $12.7 billion cash and invested assets • Proven industry consolidator Scale advantage Industr
Slide 5: Consistent industry outperformance
Consistent industry outperformance Significant Sophisticated In-house Broker Multi- Proven Solid scale pricing and claims relationships channel acquisition investment advantage underwriting expertise distribution strategy returns 2011 metrics Five-year average loss ratios Industry Top 20 102.0% 101.
Slide 6: Solid financial position and excess capital
Solid financial position and excess capital Solid balance sheet $12.7 billion in cash and invested assets* • Solid financial position at Q2-2012: – $649 million in excess capital – Estimated MCT of 205% – Debt-to-total-capital ratio of 19.8% Loans – Book value per share increased 13% from a 3% Fixed
Slide 7: Industry outlook for 2012
Industry outlook for 2012 We remain well-positioned to continue outperforming the Canadian P&C insurance industry in the current environment • Industry premiums are likely to grow at a mid single digit rate Premium growth • Low interest rate environment and reinsurance market conditions will likely
Slide 8: Ensuring profitability by mitigating Cat losses
Ensuring profitability by mitigating Cat losses Combined Ratios Impacted by Cats Personal Property 113.6% 109.0% 96.5% 103.5% 94.0% Reported Combined Ratio 8.7% 8.6% 5.9% 14.5% 8.1% Cats Ex-Cats 104.9% 100.4% 90.6% 89.0% 85.9% 2008 2009 2010 2011 H1-2012 Home Improvement Plan to Date Still to Come •
Slide 9: Four distinct avenues for growth
Four distinct avenues for growth Firming market conditions (0-2 years) Develop existing platforms (0-3 years) Personal lines • Continue to expand support to • Industry premiums remain inadequate in ON auto our broker partners • Home insurance premiums also on the rise • Leverage addition of JEVCO Co
Slide 10: Recent acquisitions are on track
Recent acquisitions are on track AXA Canada JEVCO • Retention of the AXA book has been • Closed September 4, 2012 stronger than expected • A leading provider of specialty and • Customer attrition and broker niche insurance. Strengthens cancellations, in total, have been product offering across IFC c
Slide 11: Summary
Summary Disciplined pricing, underwriting, investment and capital management have positioned us well for the future • Largest P&C insurance provider in Canada • Consistent track record of industry outperformance • Solid financial position • Excellent long-term earnings power • Organic growth platfor
Slide 12: Intact Financial Corporation – Upcoming events
Intact Financial Corporation Upcoming events November 7, 2012: Q3-2012 results November 20, 2012: Annual Investor Day