SlideShare a Scribd company logo
1 of 25
Download to read offline
Intact Financial Corporation (IFC)

Investor Presentation
June 2010
Forward-looking statement disclaimer
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 “may”, “will”, “would”, “should”, “could”,
“expects”, “plans”, “intends”, “trends”, “indications”, “anticipates”, “believes”, “estimates”, “predicts”, “likely” or “potential” or the negative or other
variations of these words or other similar or comparable words or phrases, are intended to identify forward-looking statements. Forward-looking statements are
based on estimates and assumptions made by management based on management’s experience and perception of historical trends, current conditions and
expected future developments, as well as other factors that management believes are appropriate in the circumstances. Many factors could cause the
company’s actual results, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-
looking statements, including, without limitation, the following factors: the company’s ability to implement its strategy or operate its business as management
currently expects; its ability to accurately assess the risks associated with the insurance policies that the company writes; unfavourable capital market
developments or other factors which may affect the company’s investments and funding obligations under its pension plans; the cyclical nature of the P&C
insurance industry; management’s ability to accurately predict future claims frequency; government regulations; litigation and regulatory actions; periodic
negative publicity regarding the insurance industry; intense competition; the company’s reliance on brokers and third parties to sell its products; the
company’s ability to successfully pursue its acquisition strategy; its ability to execute its business strategy; the company’s participation in the Facility
Association (a mandatory pooling arrangement among all industry participants); terrorist attacks and ensuing events; the occurrence of catastrophic events;
the company’s ability to maintain its financial strength ratings; the company’s ability to alleviate risk through reinsurance; the company’s ability to successfully
manage credit risk (including credit risk related to the financial health of reinsurers); the company’s reliance on information technology and
telecommunications systems; the company’s dependence on key employees; general economic, financial and political conditions; the company’s dependence
on the results of operations of its subsidiaries; the volatility of the stock market and other factors affecting the company’s share price; and future sales of a
substantial number of its common shares. All of the forward-looking statements included in this document are qualified by these cautionary statements. These
factors are not intended to represent a complete list of the factors that could affect the company; however, these factors should be considered carefully, and
readers should not place undue reliance on forward-looking statements made herein. The company and management have no intention and undertake no
obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Important notes:
  All references to direct premiums written in this document exclude industry pools, unless otherwise noted.
  All references to “excess capital” in this document include excess capital in the P&C insurance subsidiaries at 170% minimum capital test (“MCT”) plus liquid
assets in the holding company, unless otherwise noted.
  Catastrophe claims are any one claim, or group of claims, equal to or greater than $5.0M, related to a single event.
  All underwriting results and related ratios exclude the MYA, except if noted otherwise.




                                                                            2
Leader in auto, home and business insurance in
Canada
                                    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 billion cash and invested assets


                               Scale advantage                                                   Industry outperformer
             2009 Direct premiums written1
             ($ billions)
                       $4.2
                                                        Top five insurers                 10-year performance –        IFC
                                                        represent 36% of
                                  $3.4
                                                           the market                     IFC vs. P&C Industry1   Outperformance
                                               $2.2       $2.1
                                                                    $1.9

                                                                                           Premium growth                 1.7 pts
                                                                                           Combined ratio2                3.8 pts
                    Intact      Aviva    Co-operators      TD         RSA
                               Canada      General       Meloche
    Market
                   11.0%       8.8%           5.8%        5.5%       4.9%
                                                                                           Return on equity3              7.5 pts
    share




1 Industry data source: MSA Research excluding Lloyds, ICBC, SGI, SAF, MPI and Genworth
2 Combined ratio includes the market yield adjustment (MYA)
3 ROE is for Intact’s P&C insurance subsidiaries.
                                                                                    3
Consistent industry outperformance



Significant                 Sophisticated                In-house claims                   Broker                    Multi-channel            Proven
scale                       pricing and                  expertise                         relationships             distribution             acquisition
advantage                   underwriting                                                                                                      track record



                 2009 combined ratios                                                             Five-year average loss ratios
                                                                                                                          Industry            Intact
      106%                                                                                  75%    71.5%                71.3%        72.5%
                             104.8%                         Cdn. P&C                        70%
      104%                                               Industry Average                                    65.1%
                                                                                            65%
                                                             =101.7%                                                                         61.6%
      102%                                                                                  60%
                                                                                                                                                       54.8%
                                                                                            55%
                                                    99.7%
      100%
                                                                                            50%

       98%                                                                                  45%
                                                                                            40%
       96%                                                                                  35%
                             Top 10
                            (average)                                                       30%
                                                                                                      Auto              Personal Property    Commercial P&C



Source: MSA Research 2009
Data in both charts are for the year ended December 31, 2009
Industry results exclude Lloyds, ICBC, SAF, SGI, MPI, Genworth and Mutuals in Quebec
Includes market yield adjustment (MYA)


                                                                                       4
Q1-2010 Key points

First quarter highlights
• Net operating income per share of $0.94, 62.1% higher than last year due to
    improved underwriting performance
•   Growth accelerating to reach 5.2% on rate increases in all lines of business
    and higher units in commercial lines
•   Strong combined ratio of 93.2% driven by mild weather and results of the
    Company’s action plans
•   Trailing 12 month Operating Return on Equity of 10.9%
•   Q1-2010 annualized Operating Return on Equity of 16.1%




                                        5
Q1-2010 Financial highlights


(in $ millions, except as otherwise noted)
                                             Q1-2010    Q1-2009     Change                         Key points
                                                                                • Increase in direct premiums written reflects rate
Direct premiums written                        $914.3     $868.8       5.2%       increases in all lines of business, and growth in
(excl. pools)                                                                     written insured risks (units) particularly in
                                                                                  commercial lines

Net underwriting income                         $69.0       $7.9     773.4%     • Higher underwriting income reflects strong
                                                                                  results in all lines of business

                                                                                • 600 basis point improvement in the combined ratio
Combined ratio                                  93.2%      99.2%     (6.0)pts     reflects mild weather conditions and positive results
                                                                                  from the Company’s actions plans

Net operating income                            $0.94      $0.58      62.1%     • Increase in net operating income per share
per share (dollars)                                                               driven by improved underwriting performance

                                                                                • Improved EPS and ROE reflect strong operating
Earnings (loss) per share                       $1.01     $(0.30)        n/a      results and investment gains compared to
(dollars)                                                                         investment losses in Q1 2009.

Trailing 12 month Return                       10.3%        2.4%      7.9pts
on Equity


 as of Mar. 31, 2010




                                                             6
Strong financial position and excess capital
                            Strong balance sheet                                                 $8.0 billion in cash and invested assets
                                                                                                                                         Loans    Cash and Short
  • 231.9% MCT regulatory capital ratio                                                                                                  4.2%    term notes 2.3%
  • Excess capital position of $865.5 million, based on
    170% MCT
                                                                                       Common shares 11.5%
  • As at March 31, 2010, the debt to total capital ratio was
    14.6%. Based on a debt to total capital ratio of 20%,
                                                                                                                                                                   Fixed income
    approximately $230 million of additional debt capacity                                                                                                            63.1%
    remains
  • Solid ratings from A.M. Best, Moody’s and DBRS                                         Preferred shares
  • Adequate claims reserves evidenced by consistent                                            18.9%
    favourable development                                                              Invested asset mix is net of hedging positions




                 Acquisition capacity ($ millions)                                                              Quality investment portfolio

 Excess capital at March 31, 20101                                            $866        •     98% of bonds are rated A or better
                                                                                          •     77.5% of preferred shares are rated P1 or P2
  Remaining debt capacity2                                                    $230        •     Minimal US and European exposure
                                                                                          •     No leveraged investments
                                                  (without
  Total acquisition capacity                      issuing equity)
                                                                            > $1.0 b


All figures as at March 31, 2010 unless otherwise noted
1 Excess capital over MCT of 170%
2 At 20% debt-to-total capital. Remaining debt capacity at March 31, 2010


                                                                               7
12-month outlook:
Industry pricing environment firming up in Canada
                    • Premiums in personal lines increasing due to cost inflation
                           Industry auto rate increases picking up speed in Ontario
 Personal lines
                           Home insurance premiums increasing due to higher volume of
                           water-related claims

                    • Evidence of price hardening continued in first quarter in Ontario and
 Commercial lines     will likely begin to harden in other provinces as well.

                    • Capital markets have partially recovered from the lows of Q1-2009 but
                      low investment yields could influence higher premiums across the
                      industry.
 Capital            • There is still some uncertainty with regards to the future direction of
                      capital markets.
                    • Debt and equity capital markets are currently open allowing
                      companies to raise capital at reasonable rates.

                    Personal lines growth picking up speed

                    Organic growth potential in commercial as pricing hardens and
                    industry capacity shrinks

                    Strong capital base to participate in industry consolidation
                                    8
Ontario auto reforms: a summary
                          Context                                                          Key Features

•   Accident benefits and tort related bodily injury cost increases   •   Capping medical/rehabilitation and
    (AB inflation: 19% in last four years) have resulted in the           assessment/examination expenses for minor injuries to
    industry raising rates by 21% since January of 2008.                  $3,500.
•   Combined ratio of industry exceeds 110% - resulting premium       •   Providing standard medical and rehabilitation coverage for
    inadequacy is at least 10%.                                           non-catastrophic claims of $50,000, with optional coverage
•   Ontario drivers pay 5% of disposable income for auto                  of $100,000 or $1,100,000.
    insurance compared to 3% in other provinces                       •   Offering standard attendant care coverage for non-
•   In March 2010, new regulations providing choice to                    catastrophic claims of $36,000, with optional coverage of
    consumers and controlling costs are approved and become               $72,000 or $1,072,000.
    effective Sept. 1, 2010                                           •   Supplying optional caregiver, housekeeping and home
                                                                          maintenance benefits for non-catastrophic claimants.
                                                                      •   Capping each assessment to $2,000 – this applies for all
                   Implementation                                         assessments, whether they are requested by the claimant or
                                                                          insurer.
•   FSCO estimates claims cost reduction of 6% upon                   •   Eliminating rebuttal examinations
    implementation and reduced inflation going forward
•   Coverage reforms will kick-in on policies that will renew only
    after September 1, 2010.
•   Procedural reforms will impact claims as of September 1, 2010                                Risks
•   Accidents reported after August 31, 2010 are subject to
    reforms
                                                                      •   Uncertainty remains on the final deployment of the reforms



                                                              9
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
                                                                                  and Grey Power
  Commercial lines
  • Evidence of price hardening in Ontario                                      • Transform Canada Brokerlink
  • Opportunity to gain share in middle market                                    leveraging scale


     Consolidate Canadian P&C Market                            Expand Beyond Existing Markets
 Capital                                                   Principles
 • Over $1.0 billion of total acquisition capacity         • Financial guideposts: long term customer growth, IRR>20%
                                                           • Stepped approach with limited near-term capital outlay
 Strategy
                                                           • Build growth pipeline with meaningful impact in 5+ years
 • Grow areas where IFC has a competitive advantage
                                                           Strategy
 Opportunities                                             • Enter new market in auto insurance by leveraging strengths:
 • Global capital requirements becoming more stringent       (1) pricing, (2) claims, (3) on-line expertise
 • Industry underwriting results remain challenged         Opportunities
 • Continued difficulties in global capital markets        • Emerging markets or unsophisticated mature markets

                                                      10
Strong organic growth potential through multi-channel
distribution
 #1 Broker insurance company in Canada                                                        Targeting growing 50+ population
                   • Network of more than 1,800 brokers in                                                                                   In 10 yrs,
                     Canada                                                                                                                 25% of the
                   • Brokers in Canada own the commercial                                                                                    Canadian
                                                                                                                                            population
                     market and maintain large share of
                                                                                         • Operating in ON and AB                              will be
                     personal lines                                                                                                           50yrs+
                                                                                         • Double-digit growth in
                   • Many customers prefer the personalized
                                                                                           2009
                     service and choice offered by a broker or
                     agent                                                               • Web and call centers
  Growth opportunity: web enable Intact Insurance solutions                             Growth opportunity: expand market share


 1/3 Canadians to buy insurance online1                                                          Leveraging scale in distribution


 • #1 brand awareness in ON                                                                                            • Proprietary brokers with $400
   and PQ                                                                                                                million in direct written
 • Growing at 10%+ per year                                                                                              premiums and approximately
                                                                                                                         174,000 customers
 • Operating in ON and PQ
                                                                                                                       • More than 45 offices in
 • Leveraging explosive                                                                                                  Ontario and Alberta
   growth of the internet                1 World Insurance Report, Capgemini. 1 in 10

                                         customers say they use the internet to buy
                                         insurance, 1 in 3 wants to use it to buy
                                         insurance within 3 years


  Growth opportunity: geographic expansion potential                            11      Growth opportunity: leverage scale in sales, marketing and technology
Conclusion

  Disciplined pricing, underwriting, investment and capital
  management have positioned us well for the future

  •   Largest P&C insurance company with substantial scale advantage in the market
  •   Strong financial position
  •   Excellent long-term earnings power
  •   Organic growth platforms easily expandable
  •   M&A environment more conducive to consolidation
  •   Well-positioned as industry pricing conditions continue to improve




                                       12
Appendices
P&C insurance is a $36 billion market in Canada
                      3.8% of GDP in Canada                                             Industry - Personal lines 70% of DWP
  • Fragmented market – top five less than 36% -- vs. bank/lifeco                              Home
                                                                                             insurance,
    markets which are closer to oligopoly                                                       30%
                                                                                                                                   Commercial
                                                                                                                                  property, 20%
  • Brokers continue to own commercial lines and large share of personal
    lines in Canada; direct-to-consumer channel growing
  • Barriers to entry – scale, regulation, manufacturing capability,
    market knowledge
  • Home/business insurance rates unregulated; personal auto rates
                                                                                                                                       Commercial
    regulated in some provinces
                                                                                                                                        other, 6%
  • Capital is regulated nationally by OSFI
                                                                                                          Automobile,
  • 30-year ROE for the industry is approximately 10%                                                        40%


         Brokers dominate; direct growing1                                                   Industry - DWP by province
                                                           Direct, 20%                                                   Quebec, 18%
                                                                                           Alberta, 16%
                                                                                                                                           British
                                                                                                                                        Columbia, 9%

                                                                                                                                             Eastern
                                                                                                                                           Provinces &
                                                                                                                                           Territories,
                                                                                                                                               7%
                                                                           Agent, 13%

                                                                                                                                   Prairies, 3%
      Independent
       broker, 67%                                                                                        Ontario, 47%



DWP = direct written premiums
OSFI = Office of the Superintendent of Financial Institutions                     14
1 Industry data source: MSA data excluding Lloyds, ICBC, SAF, SGI, MPIC,

Genworth, Promutual Re and Mutuals in Quebec.
P&C industry 10-year performance vs. IFC
                 IFC competitive advantages                                                                                            Combined ratio

  •   Significant scale advantage                                                                     120%
                                                                                                                                                                                       Canadian industry1
                                                                                                      115%
  •   Sophisticated pricing and underwriting                                                                                                                                           10-year avg.
                                                                                                      110%
                                                                                                                                                                                       = 99.8%
  •   In-house claims expertise                                                                       105%
                                                                                                      100%
  •   Multi-channel distribution                                                                       95%
                                                                                                       90%
                                                                                                                                                                                       10-year avg
  •   Broker relationships                                                                             85%
                                                                                                                                                                                       = 96.0%
  •   Investment expertise                                                                             80%
                                                                                                       75%
  •   Management continuity




                                                                                                          00


                                                                                                                  01


                                                                                                                          02


                                                                                                                                  03


                                                                                                                                          04


                                                                                                                                                  05


                                                                                                                                                          06


                                                                                                                                                                  07


                                                                                                                                                                          08


                                                                                                                                                                                  09
                                                                                                       20


                                                                                                               20


                                                                                                                       20


                                                                                                                               20


                                                                                                                                       20


                                                                                                                                               20


                                                                                                                                                       20


                                                                                                                                                               20


                                                                                                                                                                       20


                                                                                                                                                                               20
                                Return on equity                                                               Direct written premium growth

      40%
                                                                                                      250%
                                                                                                                                                                                       10-year CAGR
      30%                                                                                             200%                                                                             = 8.5%
                                                                                      10-year avg.
                                                                                                      150%                                                                             Industry1
      20%                                                                             = 17.4%2
                                                                                                                                                                                       10-year CAGR
                                                                                                      100%                                                                             = 6.8%
                                                                                      Industry
      10%
                                                                                      10-year avg.1   50%
                                                                                      = 9.9%
       0%                                                                                               0%
                                                                                                        99

                                                                                                        00

                                                                                                        01

                                                                                                        02

                                                                                                        03

                                                                                                        04

                                                                                                        05

                                                                                                        06

                                                                                                        07

                                                                                                        08

                                                                                                        09
         00

                 01

                         02

                                 03

                                         04

                                                 05

                                                         06

                                                                 07

                                                                         08

                                                                                 09




                                                                                                      19

                                                                                                      20

                                                                                                      20

                                                                                                      20

                                                                                                      20

                                                                                                      20

                                                                                                      20

                                                                                                      20

                                                                                                      20

                                                                                                      20

                                                                                                      20
      20

              20

                      20

                              20

                                      20

                                              20

                                                      20

                                                              20

                                                                      20

                                                                              20




Data in all charts as at December 31, 2009
DWP = direct written premiums
OSFI = Office of the Superintendent of Financial Institutions                                15
1Industry data source: MSA Research. excluded Lloyds, ICBC, SGI, SAF, MPI,
2ROE is for Intact’s P&C insurance subsidiaries.
Further consolidation in Canadian P&C market
likely
                         Acquisition strategy                                                        Top 20 P&C insurers = 82% of market
• Targeting large-scale acquisitions of $500 million or                                                                                   Canadian
                                                                                                                                         private, 10%
  more (direct written premiums)                                                                                                                            IFC, 11%

• Pursuing acquisitions in lines of business where we                                              Non-top 20, 18%
                                                                                                                                                                         Canadian
  have expertise                                                                                                                                                        mutuals, 11%

• Acquisition target IRR of 15%
• Targets:
                                                                                                                                                                       Bank-owned, 8%
      −      Bring loss ratio of acquired book of business to our
             average loss ratio in 18-24 months
                                                                                                                                                                Canadian public
      −      Bring expense ratio to 2pts below IFC ratio                                                                  Foreign-owned                          (excl. IFC), 7%
                                                                         Approximate                                       public, 35%
                                                                             Size of
                                                                         Acquisition
                                                                                   (1)         Source: MSA Research; excluding Lloyds and Genworth (based
                                                                            (DPW)
                                                                          ($ millions)
                                                                                               on 2009 DWP)
                          Acquisition              Year of Acquisition

          Allianz Canada (Personal and Small to
          Medium Commercial Lines)
          Zurich (Personal and Small Commercial
                                                       2004                         600
                                                                                                                               M&A environment
          Lines)                                       2001                         510

          Pafco (Niche Products)                       1999                          40

          Guardian
          Canada Surety Personal Lines (Selected
                                                       1998                         630
                                                                                                  Environment more conducive to acquisitions now
          Provinces)                                   1997                          30
                                                                                                    than in recent years:
          Wellington                                   1995                         370

          St. Maurice                                  1994                          30

          Constitution                                 1992                          30
                                                                                                  • Industry ROEs, although improved from trough
          Metropolitan General                         1991                          10
                                                                                                    levels of mid-2009, are well below prior peak
          Commerce Group/belair                        1989                         290           • Foreign parent companies are generally in less
          Western Union                                1988                          60             favourable capital position

                                                                                          16
Good progress to date made on value creation
   opportunity in home insurance
Industry loss ratio advantage*
(percentage points)                                                            Opportunity to create loss ratio advantage
                                                                               similar to other business lines
                                        Favourable gap
                                     (five-year average)
                                                                                 •   Rate increases
Automobile**                                       6.4                           •   Segmentation
                                                                                 •   Insurance-to-Value
Personal property                                 -1.2
                                                                                 •   Management of water damage
Commercial non-auto                                6.8                           •   Limit exposure to sewer back-up
Commercial liability                              14.7                           •   Claims review
                                                                                 •   Customer education and incentives on loss control
                                                                                     and prevention



  Target of 10-15 points                                   •   Double-digit premium increases
                                                               through higher rates and            +     •    Lower indemnity costs by 5%
   within 12-18 months                                         insured amounts

                                                           •   Roughly 10 points benefit to the
       Progress-to-date                                        combined ratio as at Q1-2010



* Source: MSA Research; as of Dec. 31, 2009
** Includes personal and commercial auto
Based on net loss ratio and includes MYA                               17
Appendix

Historical financial performance
Historical financials
     Income statement highlights                                                      2009               2008               2007              2006          2005
     Direct written premiums (excluding pools)                                     $ 4,275            $ 4,146             $ 4,109            $ 3,994        $ 3,906
     Underwriting income (excluding MYA*)                                                 54                117                189                 404         538
     Net operating Income (excluding MYA*)                                              282                 361                457                 531         612
     Net operating EPS (excluding MYA*)                                                2.35                2.96               3.61                3.97        4.58
     Balance sheet highlights
     Total invested assets                                                         $ 7,997            $ 6,094             $ 7,223            $ 7,227        $ 6,707
     Debt                                                                               400                    0                   0                  0        127
     Total shareholders' equity (ex-AOCI)                                            3,047               3,079              3,290               3,421        2,893
     Performance metrics
     Loss ratio (excluding MYA*)                                                    70.0 %              68.2 %             66.2 %              59.1 %        56.3 %
     Expense ratio                                                                  28.7 %              28.9 %              29.0%               30.3%         29.7%
     Combined ratio (excluding MYA*)                                                 98.7%               97.1%              95.2%               89.4%        86.0%
     Net operating ROE (excl. AOCI)                                                    9.2%              11.3%              13.6%               16.8%        24.7%
     Debt / Capital                                                                  11.8%                 0.0%               0.0%                0.0%        4.2%
     Combined ratios by line of business (excl. MYA)
     Personal auto                                                                   94.9%              95.9%               94.5%              87.3%         78.8%
     Personal property                                                              109.0%             113.6%              102.2%             100.0%        104.0%
     Commercial auto                                                                 79.8%              87.2%               93.7%              86.9%         87.0%
     Commercial P&C                                                                 104.1%               85.3%              90.1%               85.2%        86.4%

* The market yield adjustment (MYA) reflects the impact of changes in the discount rate applied to the company's claims liabilities, as determined by the
market-based yield of the underlying assets.

                                                                                                19
Strategic capital management

• Strong capital base has allowed us to pursue
  our growth objectives while returning capital                   Quarterly dividend
  to shareholders
                                                                                                          6.3%
           Capital priorities                                                                  3.2%
                                                  0.4                            14.8%
                                                  0.4                 8.0%                                 $0.340
                                                                                      $0.310     $0.320
   • Acquisitions                                 0.3     53.8%              $0.270
                                                                  $0.250
   • Dividends                                    0.3

                                                  0.2
                                                        $0.1625
                                                  0.2
        Share buyback history                     0.1

                                                  0.1

   • 2010 – Board authorized up to                 -
                                                         2005     2006       2007     2008        2009      2010
     5% of total shares NCIB (75%
     completed as at May 3, 2010)
   • 2008 – Repurchased 4.6 million
     shares for a total of $176 million
   • 2007 – $500 million Substantial
     Issuer Bid
                                            20
Cash and invested assets

                                            Asset class


      Fixed income                                    Preferred shares

       Federal government and agency   38.0%           Fixed perpetual                              50%
       Corporate                       28.4%           Perpetual and callable floating
       Provincial and municipal        22.5%           and reset                                    29%
       Supranational and foreign         8.6%          Fixed callable                               21%
       ABS/MBS                           2.4%          TOTAL                                       100%
       Private placements                0.1%
       TOTAL                            100%          Quality:                                 100% Canadian
                                                      Approx. 77% rated P1 or P2
       Canadian                         87%
       United States                     1%
       Int’l (excl. U.S.)               12%          Common shares
       TOTAL                           100%


   Quality: 98% rated A or better                    High-quality, dividend paying Canadian    100% Canadian
                                                     companies. Objective is to capture non-
                                                     taxable dividend income




As of March 31, 2010

                                                21
Long-term track record of prudent reserving practices


                                              Rate of claims reserve development
• Quarterly and annual                        (favourable prior year development as a % of opening reserves)
    fluctuations in reserve
                                         9%
    development are normal                                   7.9%
                                         8%


• 2005/2006 reserve development          7%


    was unusually high due to the        6%
                                                                      4.9%
    favourable effects of certain auto   5%
                                                                                           4.0%
    insurance reforms introduced         4%
                                                 3.3%                                                 3.2%
                                                                                 2.9%
    during that time period              3%

                                         2%

• This reflects our preference to        1%

    take a conservative approach to      0%

    managing claims reserves                      2004       2005      2006      2007      2008       2009


                                                         Historical long-term average has
                                                         been 3% to 4% per year




                                         22
Appendix


Leadership team
Experienced and united leadership team
                                                                                       Years In   Years With
                                                                                       Industry      IFC

   Brindamour, Charles      President & CEO                                              18          18
   Beaulieu, Martin         SVP, Personal Lines                                          22          22
   Black, Susan             SVP, Chief HR Officer                                         3           3
   Blair, Alan              SVP, Atlantic Canada                                         26          15
   Coull-Cicchini, Debbie   SVP, Ontario                                                  6           6
   Désilets, Claude         Chief Risk Officer                                           29          21
   Gagnon, Louis            President, Intact Insurance                                  18          4
   Garneau, Denis           SVP, Quebec                                                  22          8
   Guénette, Françoise      SVP, Corporate & Legal Services                              22          13
   Guertin, Denis           President, Direct to Consumers Distribution                  25          25
   Hindle, Byron            SVP, Commercial Lines                                        32          11
   Iles, Derek              SVP, Western Canada                                          38          19
   Lincoln, David           SVP, Corporate Audit Services (Canada)                       32          13
   Ott, Jack                SVP, Chief Information Officer                               29          14
   Pontbriand, Marc         Executive Vice President                                     12          12
   Provost, Marc            SVP & Managing Director IIM and Chief Investment Officer     27          13
   Tullis, Mark             Chief Financial Officer                                      32          11
   Weightman, Peter         President, Canada Broker Link                                24          24




                                                   24
Investor Relations contact information
Dennis Westfall, Director, Investor Relations
Phone: 416.341.1464 ext 45122 Cell: 416.797.7828
Email: Dennis.Westfall@intact.net



e-mail: ir@intact.net
phone: 416. 941.5336 or 1.866.778.0774 (toll-free within North America)
fax: 416.941.0006
www.intactfc.com/Investor Relations




                                           25

More Related Content

What's hot

Supply Chain Disruptions and Corporate Peformenace
Supply Chain Disruptions and Corporate PeformenaceSupply Chain Disruptions and Corporate Peformenace
Supply Chain Disruptions and Corporate PeformenaceCapco
 
Best Practices in Forecasting & Optimization
Best Practices in Forecasting & OptimizationBest Practices in Forecasting & Optimization
Best Practices in Forecasting & OptimizationM/A/R/C Research
 
air products & chemicals 5 December 2007 Citi Basic Materials
air products & chemicals 5 December 2007 Citi Basic Materialsair products & chemicals 5 December 2007 Citi Basic Materials
air products & chemicals 5 December 2007 Citi Basic Materialsfinance26
 
Slide presentation 1 q08
Slide presentation 1 q08Slide presentation 1 q08
Slide presentation 1 q08Cia Hering RI
 
Investor_Presentation_2008_Oct_2_Oppenheimer
Investor_Presentation_2008_Oct_2_OppenheimerInvestor_Presentation_2008_Oct_2_Oppenheimer
Investor_Presentation_2008_Oct_2_Oppenheimerfinance26
 
M 100 booklet-rev 10th jan
M 100 booklet-rev 10th janM 100 booklet-rev 10th jan
M 100 booklet-rev 10th janmotioswal
 
Investor presentation february 2012
Investor presentation february 2012Investor presentation february 2012
Investor presentation february 2012Intact
 
Henry Schein
Henry ScheinHenry Schein
Henry Scheinngoldner
 
HENRY SCHEIN 2008IRPresentation_Final
HENRY SCHEIN 2008IRPresentation_FinalHENRY SCHEIN 2008IRPresentation_Final
HENRY SCHEIN 2008IRPresentation_Finalfinance35
 
VC Trends 2011 UK
VC Trends 2011 UKVC Trends 2011 UK
VC Trends 2011 UKGBSNetworks
 
Booz&co pharmaceutical sales & marketing trends-national-analysts-2011
Booz&co pharmaceutical sales & marketing trends-national-analysts-2011Booz&co pharmaceutical sales & marketing trends-national-analysts-2011
Booz&co pharmaceutical sales & marketing trends-national-analysts-2011Alfonso Gadea
 

What's hot (15)

India Channels Satisfaction- 2010
India Channels Satisfaction- 2010India Channels Satisfaction- 2010
India Channels Satisfaction- 2010
 
Supply Chain Disruptions and Corporate Peformenace
Supply Chain Disruptions and Corporate PeformenaceSupply Chain Disruptions and Corporate Peformenace
Supply Chain Disruptions and Corporate Peformenace
 
Best Practices in Forecasting & Optimization
Best Practices in Forecasting & OptimizationBest Practices in Forecasting & Optimization
Best Practices in Forecasting & Optimization
 
air products & chemicals 5 December 2007 Citi Basic Materials
air products & chemicals 5 December 2007 Citi Basic Materialsair products & chemicals 5 December 2007 Citi Basic Materials
air products & chemicals 5 December 2007 Citi Basic Materials
 
Slide presentation 1 q08
Slide presentation 1 q08Slide presentation 1 q08
Slide presentation 1 q08
 
Investor_Presentation_2008_Oct_2_Oppenheimer
Investor_Presentation_2008_Oct_2_OppenheimerInvestor_Presentation_2008_Oct_2_Oppenheimer
Investor_Presentation_2008_Oct_2_Oppenheimer
 
M 100 booklet-rev 10th jan
M 100 booklet-rev 10th janM 100 booklet-rev 10th jan
M 100 booklet-rev 10th jan
 
Investor presentation february 2012
Investor presentation february 2012Investor presentation february 2012
Investor presentation february 2012
 
Henry Schein
Henry ScheinHenry Schein
Henry Schein
 
Mhs 2010
Mhs 2010Mhs 2010
Mhs 2010
 
HENRY SCHEIN 2008IRPresentation_Final
HENRY SCHEIN 2008IRPresentation_FinalHENRY SCHEIN 2008IRPresentation_Final
HENRY SCHEIN 2008IRPresentation_Final
 
@GRIAusConf_Joining The Dots – an introduction to and trends in integrated re...
@GRIAusConf_Joining The Dots – an introduction to and trends in integrated re...@GRIAusConf_Joining The Dots – an introduction to and trends in integrated re...
@GRIAusConf_Joining The Dots – an introduction to and trends in integrated re...
 
VC Trends 2011 UK
VC Trends 2011 UKVC Trends 2011 UK
VC Trends 2011 UK
 
Booz&co pharmaceutical sales & marketing trends-national-analysts-2011
Booz&co pharmaceutical sales & marketing trends-national-analysts-2011Booz&co pharmaceutical sales & marketing trends-national-analysts-2011
Booz&co pharmaceutical sales & marketing trends-national-analysts-2011
 
Pepperdine cost of capital national summit 10 18 2011
Pepperdine cost of capital national summit 10 18 2011Pepperdine cost of capital national summit 10 18 2011
Pepperdine cost of capital national summit 10 18 2011
 

Viewers also liked

Investor Day Presentation, Sept 2012
Investor Day Presentation, Sept 2012Investor Day Presentation, Sept 2012
Investor Day Presentation, Sept 2012ADVA
 
Amg investor presentation may 2012
Amg   investor presentation may 2012Amg   investor presentation may 2012
Amg investor presentation may 2012jdiluzio
 
Investor Presentation Guidelines
Investor Presentation GuidelinesInvestor Presentation Guidelines
Investor Presentation GuidelinesWilderforex.com
 
Third Quarter 2015 Investor Presentation
Third Quarter 2015 Investor PresentationThird Quarter 2015 Investor Presentation
Third Quarter 2015 Investor PresentationThor_Industries
 
Thor investor presentation 8.5.13
Thor investor presentation 8.5.13Thor investor presentation 8.5.13
Thor investor presentation 8.5.13Thor_Industries
 
Phelps Urges Lawmakers To Push For Anti-Doping Reform
Phelps Urges Lawmakers To Push For Anti-Doping ReformPhelps Urges Lawmakers To Push For Anti-Doping Reform
Phelps Urges Lawmakers To Push For Anti-Doping Reformisteroidscom
 
Trupanion Investor Presentation
Trupanion Investor PresentationTrupanion Investor Presentation
Trupanion Investor Presentationtrupanion
 
MSLGROUP Global Institutional Investors Insight Report 2014
MSLGROUP Global Institutional Investors Insight Report 2014MSLGROUP Global Institutional Investors Insight Report 2014
MSLGROUP Global Institutional Investors Insight Report 2014MSL
 
An Introduction to the Investor Advisory Service (Handout)
An Introduction to the Investor Advisory Service (Handout)An Introduction to the Investor Advisory Service (Handout)
An Introduction to the Investor Advisory Service (Handout)Doug Gerlach
 
Investor Relations Advisory in India
Investor Relations Advisory in IndiaInvestor Relations Advisory in India
Investor Relations Advisory in IndiaManish Tulsian
 
Investor presentation december 2013
Investor presentation   december 2013Investor presentation   december 2013
Investor presentation december 2013Intact
 
Pva barclays investor presentation (9 6 11)
Pva barclays investor presentation (9 6 11)Pva barclays investor presentation (9 6 11)
Pva barclays investor presentation (9 6 11)PennVirginiaCorp
 
Investor Relations_Cook-Comm
Investor Relations_Cook-CommInvestor Relations_Cook-Comm
Investor Relations_Cook-CommRadek Nemecek
 
Ifc investor presentation_june_2011
Ifc investor presentation_june_2011Ifc investor presentation_june_2011
Ifc investor presentation_june_2011Intact
 

Viewers also liked (20)

Hancock investor meeting
Hancock investor meetingHancock investor meeting
Hancock investor meeting
 
Investor Day Presentation, Sept 2012
Investor Day Presentation, Sept 2012Investor Day Presentation, Sept 2012
Investor Day Presentation, Sept 2012
 
Amg investor presentation may 2012
Amg   investor presentation may 2012Amg   investor presentation may 2012
Amg investor presentation may 2012
 
Investor Presentation Guidelines
Investor Presentation GuidelinesInvestor Presentation Guidelines
Investor Presentation Guidelines
 
Third Quarter 2015 Investor Presentation
Third Quarter 2015 Investor PresentationThird Quarter 2015 Investor Presentation
Third Quarter 2015 Investor Presentation
 
Thor investor presentation 8.5.13
Thor investor presentation 8.5.13Thor investor presentation 8.5.13
Thor investor presentation 8.5.13
 
13 december 2016 investor deck final
13 december 2016 investor deck final13 december 2016 investor deck final
13 december 2016 investor deck final
 
Phelps Urges Lawmakers To Push For Anti-Doping Reform
Phelps Urges Lawmakers To Push For Anti-Doping ReformPhelps Urges Lawmakers To Push For Anti-Doping Reform
Phelps Urges Lawmakers To Push For Anti-Doping Reform
 
Trupanion Investor Presentation
Trupanion Investor PresentationTrupanion Investor Presentation
Trupanion Investor Presentation
 
Investor presentation November 2013
Investor presentation November 2013Investor presentation November 2013
Investor presentation November 2013
 
MSLGROUP Global Institutional Investors Insight Report 2014
MSLGROUP Global Institutional Investors Insight Report 2014MSLGROUP Global Institutional Investors Insight Report 2014
MSLGROUP Global Institutional Investors Insight Report 2014
 
An Introduction to the Investor Advisory Service (Handout)
An Introduction to the Investor Advisory Service (Handout)An Introduction to the Investor Advisory Service (Handout)
An Introduction to the Investor Advisory Service (Handout)
 
Investor Relations Advisory in India
Investor Relations Advisory in IndiaInvestor Relations Advisory in India
Investor Relations Advisory in India
 
Investor presentation december 2013
Investor presentation   december 2013Investor presentation   december 2013
Investor presentation december 2013
 
Pva barclays investor presentation (9 6 11)
Pva barclays investor presentation (9 6 11)Pva barclays investor presentation (9 6 11)
Pva barclays investor presentation (9 6 11)
 
Investor relations
Investor relationsInvestor relations
Investor relations
 
PVA Investor Presentation
PVA Investor PresentationPVA Investor Presentation
PVA Investor Presentation
 
Investor Relations_Cook-Comm
Investor Relations_Cook-CommInvestor Relations_Cook-Comm
Investor Relations_Cook-Comm
 
Ifc investor presentation_june_2011
Ifc investor presentation_june_2011Ifc investor presentation_june_2011
Ifc investor presentation_june_2011
 
Q4 2016 investor deck
Q4 2016 investor deckQ4 2016 investor deck
Q4 2016 investor deck
 

Similar to Intact Investor Presentation

Investor presentation february_2011
Investor presentation february_2011Investor presentation february_2011
Investor presentation february_2011Intact
 
Ifcinvestorpresentationnovember2011
Ifcinvestorpresentationnovember2011Ifcinvestorpresentationnovember2011
Ifcinvestorpresentationnovember2011Intact
 
Ifc investor presentation november 2011
Ifc investor presentation november 2011Ifc investor presentation november 2011
Ifc investor presentation november 2011Intact
 
IFC Investor Presentation
IFC Investor PresentationIFC Investor Presentation
IFC Investor Presentationmehradahari
 
IFC Investor Presentation September 2011
IFC Investor Presentation September 2011IFC Investor Presentation September 2011
IFC Investor Presentation September 2011mehradahari
 
Ifc investor presentation sept26
Ifc investor presentation sept26Ifc investor presentation sept26
Ifc investor presentation sept26mehradahari
 
Investor presenation november 2012
Investor presenation   november 2012Investor presenation   november 2012
Investor presenation november 2012Intact
 
Investor presentation mar 2013
Investor presentation   mar 2013Investor presentation   mar 2013
Investor presentation mar 2013Intact
 
Investor presentation may 2012
Investor presentation may 2012Investor presentation may 2012
Investor presentation may 2012Intact
 
Agf Presentation Desprotegido3
Agf Presentation Desprotegido3Agf Presentation Desprotegido3
Agf Presentation Desprotegido3guest98c0f60
 
200612 nolan life&annuity-surveyfindings
200612 nolan life&annuity-surveyfindings200612 nolan life&annuity-surveyfindings
200612 nolan life&annuity-surveyfindingsSteven Callahan
 
csx Citigroup11.06.07
csx  Citigroup11.06.07csx  Citigroup11.06.07
csx Citigroup11.06.07finance27
 
csx Citigroup11.06.07
csx  Citigroup11.06.07csx  Citigroup11.06.07
csx Citigroup11.06.07finance27
 
Customer Experience Mega Trends For Financial Services
Customer Experience Mega Trends For Financial ServicesCustomer Experience Mega Trends For Financial Services
Customer Experience Mega Trends For Financial ServicesIntelliResponse Systems Inc.
 
AEP Analyst & Investor Meeting Feburary 10, 2012
AEP Analyst & Investor Meeting Feburary 10, 2012AEP Analyst & Investor Meeting Feburary 10, 2012
AEP Analyst & Investor Meeting Feburary 10, 2012American Electric Power
 
sonic automotive SAHStephens20June20Conference20Presentation
sonic automotive SAHStephens20June20Conference20Presentationsonic automotive SAHStephens20June20Conference20Presentation
sonic automotive SAHStephens20June20Conference20Presentationfinance43
 

Similar to Intact Investor Presentation (20)

Investor presentation february_2011
Investor presentation february_2011Investor presentation february_2011
Investor presentation february_2011
 
Ifcinvestorpresentationnovember2011
Ifcinvestorpresentationnovember2011Ifcinvestorpresentationnovember2011
Ifcinvestorpresentationnovember2011
 
Ifc investor presentation november 2011
Ifc investor presentation november 2011Ifc investor presentation november 2011
Ifc investor presentation november 2011
 
IFC Investor Presentation
IFC Investor PresentationIFC Investor Presentation
IFC Investor Presentation
 
IFC Investor Presentation September 2011
IFC Investor Presentation September 2011IFC Investor Presentation September 2011
IFC Investor Presentation September 2011
 
Ifc investor presentation sept26
Ifc investor presentation sept26Ifc investor presentation sept26
Ifc investor presentation sept26
 
Investor presenation november 2012
Investor presenation   november 2012Investor presenation   november 2012
Investor presenation november 2012
 
Investor presentation mar 2013
Investor presentation   mar 2013Investor presentation   mar 2013
Investor presentation mar 2013
 
Investor presentation may 2012
Investor presentation may 2012Investor presentation may 2012
Investor presentation may 2012
 
Agf Presentation Desprotegido3
Agf Presentation Desprotegido3Agf Presentation Desprotegido3
Agf Presentation Desprotegido3
 
200612 nolan life&annuity-surveyfindings
200612 nolan life&annuity-surveyfindings200612 nolan life&annuity-surveyfindings
200612 nolan life&annuity-surveyfindings
 
AdoTube_2012 Global Format Index
AdoTube_2012 Global Format IndexAdoTube_2012 Global Format Index
AdoTube_2012 Global Format Index
 
csx Citigroup11.06.07
csx  Citigroup11.06.07csx  Citigroup11.06.07
csx Citigroup11.06.07
 
csx Citigroup11.06.07
csx  Citigroup11.06.07csx  Citigroup11.06.07
csx Citigroup11.06.07
 
1Q06 Results
1Q06 Results1Q06 Results
1Q06 Results
 
Korea Supplement
Korea SupplementKorea Supplement
Korea Supplement
 
Korea fund4q presentation
Korea fund4q presentationKorea fund4q presentation
Korea fund4q presentation
 
Customer Experience Mega Trends For Financial Services
Customer Experience Mega Trends For Financial ServicesCustomer Experience Mega Trends For Financial Services
Customer Experience Mega Trends For Financial Services
 
AEP Analyst & Investor Meeting Feburary 10, 2012
AEP Analyst & Investor Meeting Feburary 10, 2012AEP Analyst & Investor Meeting Feburary 10, 2012
AEP Analyst & Investor Meeting Feburary 10, 2012
 
sonic automotive SAHStephens20June20Conference20Presentation
sonic automotive SAHStephens20June20Conference20Presentationsonic automotive SAHStephens20June20Conference20Presentation
sonic automotive SAHStephens20June20Conference20Presentation
 

More from Intact

Ifc investor-presentation-(may-2018)-revised
Ifc investor-presentation-(may-2018)-revisedIfc investor-presentation-(may-2018)-revised
Ifc investor-presentation-(may-2018)-revisedIntact
 
Ifc investor-presentation-(may-2018)
Ifc investor-presentation-(may-2018)Ifc investor-presentation-(may-2018)
Ifc investor-presentation-(may-2018)Intact
 
Ifc investor-presentation-(feb-2018)-final-v2
Ifc investor-presentation-(feb-2018)-final-v2Ifc investor-presentation-(feb-2018)-final-v2
Ifc investor-presentation-(feb-2018)-final-v2Intact
 
Ifc investor presentation (nov 2017)
Ifc investor presentation (nov 2017)Ifc investor presentation (nov 2017)
Ifc investor presentation (nov 2017)Intact
 
Ifc investor-presentation-(aug-2017)
Ifc investor-presentation-(aug-2017)Ifc investor-presentation-(aug-2017)
Ifc investor-presentation-(aug-2017)Intact
 
Ifc investor presentation (may 2017) rev
Ifc investor presentation (may 2017) revIfc investor presentation (may 2017) rev
Ifc investor presentation (may 2017) revIntact
 
Ifc investor-presentation-(may-2017)
Ifc investor-presentation-(may-2017)Ifc investor-presentation-(may-2017)
Ifc investor-presentation-(may-2017)Intact
 
Ifc investor presentation (march 6 2017)
Ifc investor presentation (march 6 2017)Ifc investor presentation (march 6 2017)
Ifc investor presentation (march 6 2017)Intact
 
Ifc investor presentation (march 6 2017)
Ifc investor presentation (march 6 2017)Ifc investor presentation (march 6 2017)
Ifc investor presentation (march 6 2017)Intact
 
Ifc investor-presentation-(november-2016)
Ifc investor-presentation-(november-2016)Ifc investor-presentation-(november-2016)
Ifc investor-presentation-(november-2016)Intact
 
Ifc investor-presentation-(september-2016)
Ifc investor-presentation-(september-2016)Ifc investor-presentation-(september-2016)
Ifc investor-presentation-(september-2016)Intact
 
Ifc investor-presentation-(august-2016)
Ifc investor-presentation-(august-2016)Ifc investor-presentation-(august-2016)
Ifc investor-presentation-(august-2016)Intact
 
Investor Presentation June 2016
Investor Presentation June 2016Investor Presentation June 2016
Investor Presentation June 2016Intact
 
Investor presentation-april-2016
Investor presentation-april-2016Investor presentation-april-2016
Investor presentation-april-2016Intact
 
Investor presentation-march-2016
Investor presentation-march-2016Investor presentation-march-2016
Investor presentation-march-2016Intact
 
Investor presentation-march-2016
Investor presentation-march-2016Investor presentation-march-2016
Investor presentation-march-2016Intact
 
Investor Presentation for December 2015
Investor Presentation for December 2015Investor Presentation for December 2015
Investor Presentation for December 2015Intact
 
Investor presentation-august-2015
Investor presentation-august-2015Investor presentation-august-2015
Investor presentation-august-2015Intact
 
Investor presentation-may-2015 v001-p70xic
Investor presentation-may-2015 v001-p70xicInvestor presentation-may-2015 v001-p70xic
Investor presentation-may-2015 v001-p70xicIntact
 
Investor Presentation April 2015
Investor Presentation April 2015Investor Presentation April 2015
Investor Presentation April 2015Intact
 

More from Intact (20)

Ifc investor-presentation-(may-2018)-revised
Ifc investor-presentation-(may-2018)-revisedIfc investor-presentation-(may-2018)-revised
Ifc investor-presentation-(may-2018)-revised
 
Ifc investor-presentation-(may-2018)
Ifc investor-presentation-(may-2018)Ifc investor-presentation-(may-2018)
Ifc investor-presentation-(may-2018)
 
Ifc investor-presentation-(feb-2018)-final-v2
Ifc investor-presentation-(feb-2018)-final-v2Ifc investor-presentation-(feb-2018)-final-v2
Ifc investor-presentation-(feb-2018)-final-v2
 
Ifc investor presentation (nov 2017)
Ifc investor presentation (nov 2017)Ifc investor presentation (nov 2017)
Ifc investor presentation (nov 2017)
 
Ifc investor-presentation-(aug-2017)
Ifc investor-presentation-(aug-2017)Ifc investor-presentation-(aug-2017)
Ifc investor-presentation-(aug-2017)
 
Ifc investor presentation (may 2017) rev
Ifc investor presentation (may 2017) revIfc investor presentation (may 2017) rev
Ifc investor presentation (may 2017) rev
 
Ifc investor-presentation-(may-2017)
Ifc investor-presentation-(may-2017)Ifc investor-presentation-(may-2017)
Ifc investor-presentation-(may-2017)
 
Ifc investor presentation (march 6 2017)
Ifc investor presentation (march 6 2017)Ifc investor presentation (march 6 2017)
Ifc investor presentation (march 6 2017)
 
Ifc investor presentation (march 6 2017)
Ifc investor presentation (march 6 2017)Ifc investor presentation (march 6 2017)
Ifc investor presentation (march 6 2017)
 
Ifc investor-presentation-(november-2016)
Ifc investor-presentation-(november-2016)Ifc investor-presentation-(november-2016)
Ifc investor-presentation-(november-2016)
 
Ifc investor-presentation-(september-2016)
Ifc investor-presentation-(september-2016)Ifc investor-presentation-(september-2016)
Ifc investor-presentation-(september-2016)
 
Ifc investor-presentation-(august-2016)
Ifc investor-presentation-(august-2016)Ifc investor-presentation-(august-2016)
Ifc investor-presentation-(august-2016)
 
Investor Presentation June 2016
Investor Presentation June 2016Investor Presentation June 2016
Investor Presentation June 2016
 
Investor presentation-april-2016
Investor presentation-april-2016Investor presentation-april-2016
Investor presentation-april-2016
 
Investor presentation-march-2016
Investor presentation-march-2016Investor presentation-march-2016
Investor presentation-march-2016
 
Investor presentation-march-2016
Investor presentation-march-2016Investor presentation-march-2016
Investor presentation-march-2016
 
Investor Presentation for December 2015
Investor Presentation for December 2015Investor Presentation for December 2015
Investor Presentation for December 2015
 
Investor presentation-august-2015
Investor presentation-august-2015Investor presentation-august-2015
Investor presentation-august-2015
 
Investor presentation-may-2015 v001-p70xic
Investor presentation-may-2015 v001-p70xicInvestor presentation-may-2015 v001-p70xic
Investor presentation-may-2015 v001-p70xic
 
Investor Presentation April 2015
Investor Presentation April 2015Investor Presentation April 2015
Investor Presentation April 2015
 

Intact Investor Presentation

  • 1. Intact Financial Corporation (IFC) Investor Presentation June 2010
  • 2. Forward-looking statement disclaimer 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 “may”, “will”, “would”, “should”, “could”, “expects”, “plans”, “intends”, “trends”, “indications”, “anticipates”, “believes”, “estimates”, “predicts”, “likely” or “potential” or the negative or other variations of these words or other similar or comparable words or phrases, are intended to identify forward-looking statements. Forward-looking statements are based on estimates and assumptions made by management based on management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors that management believes are appropriate in the circumstances. Many factors could cause the company’s actual results, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward- looking statements, including, without limitation, the following factors: the company’s ability to implement its strategy or operate its business as management currently expects; its ability to accurately assess the risks associated with the insurance policies that the company writes; unfavourable capital market developments or other factors which may affect the company’s investments and funding obligations under its pension plans; the cyclical nature of the P&C insurance industry; management’s ability to accurately predict future claims frequency; government regulations; litigation and regulatory actions; periodic negative publicity regarding the insurance industry; intense competition; the company’s reliance on brokers and third parties to sell its products; the company’s ability to successfully pursue its acquisition strategy; its ability to execute its business strategy; the company’s participation in the Facility Association (a mandatory pooling arrangement among all industry participants); terrorist attacks and ensuing events; the occurrence of catastrophic events; the company’s ability to maintain its financial strength ratings; the company’s ability to alleviate risk through reinsurance; the company’s ability to successfully manage credit risk (including credit risk related to the financial health of reinsurers); the company’s reliance on information technology and telecommunications systems; the company’s dependence on key employees; general economic, financial and political conditions; the company’s dependence on the results of operations of its subsidiaries; the volatility of the stock market and other factors affecting the company’s share price; and future sales of a substantial number of its common shares. All of the forward-looking statements included in this document are qualified by these cautionary statements. These factors are not intended to represent a complete list of the factors that could affect the company; however, these factors should be considered carefully, and readers should not place undue reliance on forward-looking statements made herein. The company and management have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Important notes: All references to direct premiums written in this document exclude industry pools, unless otherwise noted. All references to “excess capital” in this document include excess capital in the P&C insurance subsidiaries at 170% minimum capital test (“MCT”) plus liquid assets in the holding company, unless otherwise noted. Catastrophe claims are any one claim, or group of claims, equal to or greater than $5.0M, related to a single event. All underwriting results and related ratios exclude the MYA, except if noted otherwise. 2
  • 3. Leader in auto, home and business insurance in Canada 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 • $8 billion cash and invested assets Scale advantage Industry outperformer 2009 Direct premiums written1 ($ billions) $4.2 Top five insurers 10-year performance – IFC represent 36% of $3.4 the market IFC vs. P&C Industry1 Outperformance $2.2 $2.1 $1.9 Premium growth 1.7 pts Combined ratio2 3.8 pts Intact Aviva Co-operators TD RSA Canada General Meloche Market 11.0% 8.8% 5.8% 5.5% 4.9% Return on equity3 7.5 pts share 1 Industry data source: MSA Research excluding Lloyds, ICBC, SGI, SAF, MPI and Genworth 2 Combined ratio includes the market yield adjustment (MYA) 3 ROE is for Intact’s P&C insurance subsidiaries. 3
  • 4. Consistent industry outperformance Significant Sophisticated In-house claims Broker Multi-channel Proven scale pricing and expertise relationships distribution acquisition advantage underwriting track record 2009 combined ratios Five-year average loss ratios Industry Intact 106% 75% 71.5% 71.3% 72.5% 104.8% Cdn. P&C 70% 104% Industry Average 65.1% 65% =101.7% 61.6% 102% 60% 54.8% 55% 99.7% 100% 50% 98% 45% 40% 96% 35% Top 10 (average) 30% Auto Personal Property Commercial P&C Source: MSA Research 2009 Data in both charts are for the year ended December 31, 2009 Industry results exclude Lloyds, ICBC, SAF, SGI, MPI, Genworth and Mutuals in Quebec Includes market yield adjustment (MYA) 4
  • 5. Q1-2010 Key points First quarter highlights • Net operating income per share of $0.94, 62.1% higher than last year due to improved underwriting performance • Growth accelerating to reach 5.2% on rate increases in all lines of business and higher units in commercial lines • Strong combined ratio of 93.2% driven by mild weather and results of the Company’s action plans • Trailing 12 month Operating Return on Equity of 10.9% • Q1-2010 annualized Operating Return on Equity of 16.1% 5
  • 6. Q1-2010 Financial highlights (in $ millions, except as otherwise noted) Q1-2010 Q1-2009 Change Key points • Increase in direct premiums written reflects rate Direct premiums written $914.3 $868.8 5.2% increases in all lines of business, and growth in (excl. pools) written insured risks (units) particularly in commercial lines Net underwriting income $69.0 $7.9 773.4% • Higher underwriting income reflects strong results in all lines of business • 600 basis point improvement in the combined ratio Combined ratio 93.2% 99.2% (6.0)pts reflects mild weather conditions and positive results from the Company’s actions plans Net operating income $0.94 $0.58 62.1% • Increase in net operating income per share per share (dollars) driven by improved underwriting performance • Improved EPS and ROE reflect strong operating Earnings (loss) per share $1.01 $(0.30) n/a results and investment gains compared to (dollars) investment losses in Q1 2009. Trailing 12 month Return 10.3% 2.4% 7.9pts on Equity as of Mar. 31, 2010 6
  • 7. Strong financial position and excess capital Strong balance sheet $8.0 billion in cash and invested assets Loans Cash and Short • 231.9% MCT regulatory capital ratio 4.2% term notes 2.3% • Excess capital position of $865.5 million, based on 170% MCT Common shares 11.5% • As at March 31, 2010, the debt to total capital ratio was 14.6%. Based on a debt to total capital ratio of 20%, Fixed income approximately $230 million of additional debt capacity 63.1% remains • Solid ratings from A.M. Best, Moody’s and DBRS Preferred shares • Adequate claims reserves evidenced by consistent 18.9% favourable development Invested asset mix is net of hedging positions Acquisition capacity ($ millions) Quality investment portfolio Excess capital at March 31, 20101 $866 • 98% of bonds are rated A or better • 77.5% of preferred shares are rated P1 or P2 Remaining debt capacity2 $230 • Minimal US and European exposure • No leveraged investments (without Total acquisition capacity issuing equity) > $1.0 b All figures as at March 31, 2010 unless otherwise noted 1 Excess capital over MCT of 170% 2 At 20% debt-to-total capital. Remaining debt capacity at March 31, 2010 7
  • 8. 12-month outlook: Industry pricing environment firming up in Canada • Premiums in personal lines increasing due to cost inflation Industry auto rate increases picking up speed in Ontario Personal lines Home insurance premiums increasing due to higher volume of water-related claims • Evidence of price hardening continued in first quarter in Ontario and Commercial lines will likely begin to harden in other provinces as well. • Capital markets have partially recovered from the lows of Q1-2009 but low investment yields could influence higher premiums across the industry. Capital • There is still some uncertainty with regards to the future direction of capital markets. • Debt and equity capital markets are currently open allowing companies to raise capital at reasonable rates. Personal lines growth picking up speed Organic growth potential in commercial as pricing hardens and industry capacity shrinks Strong capital base to participate in industry consolidation 8
  • 9. Ontario auto reforms: a summary Context Key Features • Accident benefits and tort related bodily injury cost increases • Capping medical/rehabilitation and (AB inflation: 19% in last four years) have resulted in the assessment/examination expenses for minor injuries to industry raising rates by 21% since January of 2008. $3,500. • Combined ratio of industry exceeds 110% - resulting premium • Providing standard medical and rehabilitation coverage for inadequacy is at least 10%. non-catastrophic claims of $50,000, with optional coverage • Ontario drivers pay 5% of disposable income for auto of $100,000 or $1,100,000. insurance compared to 3% in other provinces • Offering standard attendant care coverage for non- • In March 2010, new regulations providing choice to catastrophic claims of $36,000, with optional coverage of consumers and controlling costs are approved and become $72,000 or $1,072,000. effective Sept. 1, 2010 • Supplying optional caregiver, housekeeping and home maintenance benefits for non-catastrophic claimants. • Capping each assessment to $2,000 – this applies for all Implementation assessments, whether they are requested by the claimant or insurer. • FSCO estimates claims cost reduction of 6% upon • Eliminating rebuttal examinations implementation and reduced inflation going forward • Coverage reforms will kick-in on policies that will renew only after September 1, 2010. • Procedural reforms will impact claims as of September 1, 2010 Risks • Accidents reported after August 31, 2010 are subject to reforms • Uncertainty remains on the final deployment of the reforms 9
  • 10. 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 and Grey Power Commercial lines • Evidence of price hardening in Ontario • Transform Canada Brokerlink • Opportunity to gain share in middle market leveraging scale Consolidate Canadian P&C Market Expand Beyond Existing Markets Capital Principles • Over $1.0 billion of total acquisition capacity • Financial guideposts: long term customer growth, IRR>20% • Stepped approach with limited near-term capital outlay Strategy • Build growth pipeline with meaningful impact in 5+ years • Grow areas where IFC has a competitive advantage Strategy Opportunities • Enter new market in auto insurance by leveraging strengths: • Global capital requirements becoming more stringent (1) pricing, (2) claims, (3) on-line expertise • Industry underwriting results remain challenged Opportunities • Continued difficulties in global capital markets • Emerging markets or unsophisticated mature markets 10
  • 11. Strong organic growth potential through multi-channel distribution #1 Broker insurance company in Canada Targeting growing 50+ population • Network of more than 1,800 brokers in In 10 yrs, Canada 25% of the • Brokers in Canada own the commercial Canadian population market and maintain large share of • Operating in ON and AB will be personal lines 50yrs+ • Double-digit growth in • Many customers prefer the personalized 2009 service and choice offered by a broker or agent • Web and call centers Growth opportunity: web enable Intact Insurance solutions Growth opportunity: expand market share 1/3 Canadians to buy insurance online1 Leveraging scale in distribution • #1 brand awareness in ON • Proprietary brokers with $400 and PQ million in direct written • Growing at 10%+ per year premiums and approximately 174,000 customers • Operating in ON and PQ • More than 45 offices in • Leveraging explosive Ontario and Alberta growth of the internet 1 World Insurance Report, Capgemini. 1 in 10 customers say they use the internet to buy insurance, 1 in 3 wants to use it to buy insurance within 3 years Growth opportunity: geographic expansion potential 11 Growth opportunity: leverage scale in sales, marketing and technology
  • 12. Conclusion Disciplined pricing, underwriting, investment and capital management have positioned us well for the future • Largest P&C insurance company with substantial scale advantage in the market • Strong financial position • Excellent long-term earnings power • Organic growth platforms easily expandable • M&A environment more conducive to consolidation • Well-positioned as industry pricing conditions continue to improve 12
  • 14. P&C insurance is a $36 billion market in Canada 3.8% of GDP in Canada Industry - Personal lines 70% of DWP • Fragmented market – top five less than 36% -- vs. bank/lifeco Home insurance, markets which are closer to oligopoly 30% Commercial property, 20% • Brokers continue to own commercial lines and large share of personal lines in Canada; direct-to-consumer channel growing • Barriers to entry – scale, regulation, manufacturing capability, market knowledge • Home/business insurance rates unregulated; personal auto rates Commercial regulated in some provinces other, 6% • Capital is regulated nationally by OSFI Automobile, • 30-year ROE for the industry is approximately 10% 40% Brokers dominate; direct growing1 Industry - DWP by province Direct, 20% Quebec, 18% Alberta, 16% British Columbia, 9% Eastern Provinces & Territories, 7% Agent, 13% Prairies, 3% Independent broker, 67% Ontario, 47% DWP = direct written premiums OSFI = Office of the Superintendent of Financial Institutions 14 1 Industry data source: MSA data excluding Lloyds, ICBC, SAF, SGI, MPIC, Genworth, Promutual Re and Mutuals in Quebec.
  • 15. P&C industry 10-year performance vs. IFC IFC competitive advantages Combined ratio • Significant scale advantage 120% Canadian industry1 115% • Sophisticated pricing and underwriting 10-year avg. 110% = 99.8% • In-house claims expertise 105% 100% • Multi-channel distribution 95% 90% 10-year avg • Broker relationships 85% = 96.0% • Investment expertise 80% 75% • Management continuity 00 01 02 03 04 05 06 07 08 09 20 20 20 20 20 20 20 20 20 20 Return on equity Direct written premium growth 40% 250% 10-year CAGR 30% 200% = 8.5% 10-year avg. 150% Industry1 20% = 17.4%2 10-year CAGR 100% = 6.8% Industry 10% 10-year avg.1 50% = 9.9% 0% 0% 99 00 01 02 03 04 05 06 07 08 09 00 01 02 03 04 05 06 07 08 09 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 Data in all charts as at December 31, 2009 DWP = direct written premiums OSFI = Office of the Superintendent of Financial Institutions 15 1Industry data source: MSA Research. excluded Lloyds, ICBC, SGI, SAF, MPI, 2ROE is for Intact’s P&C insurance subsidiaries.
  • 16. Further consolidation in Canadian P&C market likely Acquisition strategy Top 20 P&C insurers = 82% of market • Targeting large-scale acquisitions of $500 million or Canadian private, 10% more (direct written premiums) IFC, 11% • Pursuing acquisitions in lines of business where we Non-top 20, 18% Canadian have expertise mutuals, 11% • Acquisition target IRR of 15% • Targets: Bank-owned, 8% − Bring loss ratio of acquired book of business to our average loss ratio in 18-24 months Canadian public − Bring expense ratio to 2pts below IFC ratio Foreign-owned (excl. IFC), 7% Approximate public, 35% Size of Acquisition (1) Source: MSA Research; excluding Lloyds and Genworth (based (DPW) ($ millions) on 2009 DWP) Acquisition Year of Acquisition Allianz Canada (Personal and Small to Medium Commercial Lines) Zurich (Personal and Small Commercial 2004 600 M&A environment Lines) 2001 510 Pafco (Niche Products) 1999 40 Guardian Canada Surety Personal Lines (Selected 1998 630 Environment more conducive to acquisitions now Provinces) 1997 30 than in recent years: Wellington 1995 370 St. Maurice 1994 30 Constitution 1992 30 • Industry ROEs, although improved from trough Metropolitan General 1991 10 levels of mid-2009, are well below prior peak Commerce Group/belair 1989 290 • Foreign parent companies are generally in less Western Union 1988 60 favourable capital position 16
  • 17. Good progress to date made on value creation opportunity in home insurance Industry loss ratio advantage* (percentage points) Opportunity to create loss ratio advantage similar to other business lines Favourable gap (five-year average) • Rate increases Automobile** 6.4 • Segmentation • Insurance-to-Value Personal property -1.2 • Management of water damage Commercial non-auto 6.8 • Limit exposure to sewer back-up Commercial liability 14.7 • Claims review • Customer education and incentives on loss control and prevention Target of 10-15 points • Double-digit premium increases through higher rates and + • Lower indemnity costs by 5% within 12-18 months insured amounts • Roughly 10 points benefit to the Progress-to-date combined ratio as at Q1-2010 * Source: MSA Research; as of Dec. 31, 2009 ** Includes personal and commercial auto Based on net loss ratio and includes MYA 17
  • 19. Historical financials Income statement highlights 2009 2008 2007 2006 2005 Direct written premiums (excluding pools) $ 4,275 $ 4,146 $ 4,109 $ 3,994 $ 3,906 Underwriting income (excluding MYA*) 54 117 189 404 538 Net operating Income (excluding MYA*) 282 361 457 531 612 Net operating EPS (excluding MYA*) 2.35 2.96 3.61 3.97 4.58 Balance sheet highlights Total invested assets $ 7,997 $ 6,094 $ 7,223 $ 7,227 $ 6,707 Debt 400 0 0 0 127 Total shareholders' equity (ex-AOCI) 3,047 3,079 3,290 3,421 2,893 Performance metrics Loss ratio (excluding MYA*) 70.0 % 68.2 % 66.2 % 59.1 % 56.3 % Expense ratio 28.7 % 28.9 % 29.0% 30.3% 29.7% Combined ratio (excluding MYA*) 98.7% 97.1% 95.2% 89.4% 86.0% Net operating ROE (excl. AOCI) 9.2% 11.3% 13.6% 16.8% 24.7% Debt / Capital 11.8% 0.0% 0.0% 0.0% 4.2% Combined ratios by line of business (excl. MYA) Personal auto 94.9% 95.9% 94.5% 87.3% 78.8% Personal property 109.0% 113.6% 102.2% 100.0% 104.0% Commercial auto 79.8% 87.2% 93.7% 86.9% 87.0% Commercial P&C 104.1% 85.3% 90.1% 85.2% 86.4% * The market yield adjustment (MYA) reflects the impact of changes in the discount rate applied to the company's claims liabilities, as determined by the market-based yield of the underlying assets. 19
  • 20. Strategic capital management • Strong capital base has allowed us to pursue our growth objectives while returning capital Quarterly dividend to shareholders 6.3% Capital priorities 3.2% 0.4 14.8% 0.4 8.0% $0.340 $0.310 $0.320 • Acquisitions 0.3 53.8% $0.270 $0.250 • Dividends 0.3 0.2 $0.1625 0.2 Share buyback history 0.1 0.1 • 2010 – Board authorized up to - 2005 2006 2007 2008 2009 2010 5% of total shares NCIB (75% completed as at May 3, 2010) • 2008 – Repurchased 4.6 million shares for a total of $176 million • 2007 – $500 million Substantial Issuer Bid 20
  • 21. Cash and invested assets Asset class Fixed income Preferred shares Federal government and agency 38.0% Fixed perpetual 50% Corporate 28.4% Perpetual and callable floating Provincial and municipal 22.5% and reset 29% Supranational and foreign 8.6% Fixed callable 21% ABS/MBS 2.4% TOTAL 100% Private placements 0.1% TOTAL 100% Quality: 100% Canadian Approx. 77% rated P1 or P2 Canadian 87% United States 1% Int’l (excl. U.S.) 12% Common shares TOTAL 100% Quality: 98% rated A or better High-quality, dividend paying Canadian 100% Canadian companies. Objective is to capture non- taxable dividend income As of March 31, 2010 21
  • 22. Long-term track record of prudent reserving practices Rate of claims reserve development • Quarterly and annual (favourable prior year development as a % of opening reserves) fluctuations in reserve 9% development are normal 7.9% 8% • 2005/2006 reserve development 7% was unusually high due to the 6% 4.9% favourable effects of certain auto 5% 4.0% insurance reforms introduced 4% 3.3% 3.2% 2.9% during that time period 3% 2% • This reflects our preference to 1% take a conservative approach to 0% managing claims reserves 2004 2005 2006 2007 2008 2009 Historical long-term average has been 3% to 4% per year 22
  • 24. Experienced and united leadership team Years In Years With Industry IFC Brindamour, Charles President & CEO 18 18 Beaulieu, Martin SVP, Personal Lines 22 22 Black, Susan SVP, Chief HR Officer 3 3 Blair, Alan SVP, Atlantic Canada 26 15 Coull-Cicchini, Debbie SVP, Ontario 6 6 Désilets, Claude Chief Risk Officer 29 21 Gagnon, Louis President, Intact Insurance 18 4 Garneau, Denis SVP, Quebec 22 8 Guénette, Françoise SVP, Corporate & Legal Services 22 13 Guertin, Denis President, Direct to Consumers Distribution 25 25 Hindle, Byron SVP, Commercial Lines 32 11 Iles, Derek SVP, Western Canada 38 19 Lincoln, David SVP, Corporate Audit Services (Canada) 32 13 Ott, Jack SVP, Chief Information Officer 29 14 Pontbriand, Marc Executive Vice President 12 12 Provost, Marc SVP & Managing Director IIM and Chief Investment Officer 27 13 Tullis, Mark Chief Financial Officer 32 11 Weightman, Peter President, Canada Broker Link 24 24 24
  • 25. Investor Relations contact information Dennis Westfall, Director, Investor Relations Phone: 416.341.1464 ext 45122 Cell: 416.797.7828 Email: Dennis.Westfall@intact.net e-mail: ir@intact.net phone: 416. 941.5336 or 1.866.778.0774 (toll-free within North America) fax: 416.941.0006 www.intactfc.com/Investor Relations 25