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Cision Canada
29-07-2025
- Business
- Cision Canada
Intact Financial Corporation reports Q2-2025 results Français
, /CNW/ - Highlights Operating DPW 1,2 growth of 4% improved sequentially, primarily attributable to Personal lines Combined ratio 1 was strong at 86.1% with solid performance across all geographies Net operating income per share 1 of $5.23 (EPS of $4.70) reflected robust underwriting performance and stable contributions from investment and distribution income BVPS 1 increased 12% from last year to $98.67 driven by solid earnings growth, with operating ROE 1 of 16.3% (ROE 1 of 14.0%) Robust balance sheet with total capital margin 1 of $3.1 billion and adjusted debt-to-total capital ratio 1 decreasing to 18.4% Charles Brindamour, Chief Executive Officer, said: "I'm pleased to see our platform continuing to prove its strength in the current economic and geopolitical environment. We delivered another quarter of solid underlying results, while growing our premium base in Personal lines and remaining disciplined in Commercial and Specialty lines. We did not experience significant CAT losses in the quarter, but our business is well positioned to help our customers deal with the deep trend of increased natural disasters. With our resilient balance sheet, we remain ready to capture opportunities as they arise, while staying on track to continue delivering on our financial objectives of exceeding the industry ROE by 500 basis points and growing NOIPS by 10% annually over time." Consolidated Highlights (in millions of Canadian dollars except as otherwise noted) Q2-2025 Q2-2024 Change H1-2025 H1-2024 Change Operating direct premiums written 1,2 7,031 6,655 4 % 12,395 11,765 4 % Combined ratio 1 86.1 % 87.1 % (1.0) pt 88.7 % 89.1 % (0.4) pts Underwriting income (loss) 1 784 681 15 % 1,269 1,140 11 % Operating net investment income 400 387 3 % 815 767 6 % Distribution income 1 165 169 (2) % 282 269 5 % Net operating income attributable to common shareholders 1 935 866 8 % 1,652 1,513 9 % Net income 867 758 14 % 1,543 1,431 8 % Per share measures (in dollars) Net operating income per share (NOIPS) 1,3 $5.23 $4.86 8 % $9.25 $8.48 9 % Earnings per share (EPS) – diluted 3 $4.70 $4.04 16 % $8.39 $7.72 9 % Book value per share 1 $98.67 $88.00 12 % Return on equity for the last 12 months Operating ROE 1 16.3 % 17.0 % (0.7) pts Adjusted ROE 1 16.5 % 16.7 % (0.2) pts ROE 1 14.0 % 13.7 % 0.3 pts Capital management Total capital margin 1 $3,136 2,884 252 Adjusted debt-to-total capital ratio 1 18.4 % 19.8 % (1.4) pts 12-Month Industry Outlook We expect favourable market conditions overall, though varying by segment: In Personal auto and Personal property, we expect high-single-digit to low-double-digit premium growth; and In Commercial and Specialty lines across all geographies, we expect mid-single-digit premium growth. ____________________________________________ 1 This release contains Non-GAAP financial measures, Non-GAAP ratios and other financial measures (each as defined in National Instrument 52-112 "Non-GAAP and Other Financial Measures Disclosure"). Refer to Section 15 – Non-GAAP and other financial measures in the Q2-2025 Management's Discussion and Analysis for further details. 2 DPW change (growth) is presented in constant currency. 3 Per share metric is calculated based on the weighted-average diluted number of common shares. Q2-2025 Consolidated Performance Operating DPW growth was 4%, attributable to rate actions and continued unit growth in Personal lines. Within Commercial lines, growth was tempered by continued pressures in large accounts, as well as remediation actions in the UK&I. Combined ratio remained strong and improved by 1 point to 86.1%, despite higher catastrophe activity compared to last year's low level. This reflected solid performance across all geographies, as well as strong favourable prior year development, notably in Canada Commercial lines. Operating net investment income increased 3% from last year to $400 million, due to slightly higher book yields and favourable foreign currency movements. Distribution income of $165 million reflected solid M&A activities in BrokerLink, offset by slower growth in other parts of the business, including On Side. Net operating income attributable to common shareholders of $935 million reflected strong underwriting performance, as well as stable contributions from investment and distribution income. Earnings per share increased 16% to $4.70 in the quarter, driven by strong operating income and higher mark-to-market gains on our equity securities. Solid operating ROE of 16.3% reflected a robust performance across our lines of business and geographies, despite the impact of higher-than-expected catastrophe losses over the last 12 months. Adjusted ROE of 16.5% included lower exited lines losses and restructuring costs over the last 12 months. Segment Underwriting Performance (in millions of Canadian dollars except as otherwise noted) Q2 2025 Q2 2024 Change H1-2025 H1-2024 Change Operating direct premiums written 1 (growth in constant currency) Canada 4,908 4,563 8 % 8,388 7,815 7 % UK&I 1,330 1,315 (5) % 2,583 2,560 (5) % US 793 777 - % 1,424 1,390 (1) % Total 7,031 6,655 4 % 12,395 11,765 4 % Combined ratio 1 Canada 83.8 % 85.4 % (1.6) pts 87.0 % 88.1 % (1.1) pts UK&I 92.9 % 92.2 % 0.7 pts 95.2 % 93.4 % 1.8 pts US 87.8 % 88.5 % (0.7) pts 87.2 % 88.3 % (1.1) pts Combined ratio 86.1 % 87.1 % (1.0) pt 88.7 % 89.1 % (0.4) pts Canada Personal auto operating DPW increased by 11%, reflecting rate actions and 2% unit growth in hard market conditions. The combined ratio was strong at 90.3% in a seasonally favourable quarter, reflecting the benefits of our profitability actions. Personal property operating DPW grew by 10%, primarily due to rates and 2% unit growth in hard market conditions. The combined ratio remained strong at 84.5% despite increasing 6.5 points from last year, as the prior period benefitted from benign weather activity. Commercial lines operating DPW growth was 1%, driven by low-to-mid-single-digit rates overall. We continue to see elevated competition in large accounts. The combined ratio was very strong at 74.0%, driven by our continued underwriting discipline and very healthy favourable prior-year development. UK&I Operating DPW decreased 5% reflecting continued remediation actions in the DLG portfolio, as well as strategic exits, primarily within certain delegated relationships. Excluding these items, growth was 3% as we continue to see competition in large accounts. The combined ratio of 92.9% remained solid despite higher large losses, reflecting performance improvements in the DLG portfolio. US Operating DPW growth was flat, including a 3-point negative impact from a specific business line. Rates remained healthy overall. The combined ratio was solid at 87.8%, reflecting year-over-year improvements in our underlying performance, tempered by higher expenses. ___________________________________________ 1 This release contains Non-GAAP financial measures, Non-GAAP ratios and other financial measures (each as defined in National Instrument 52-112 "Non-GAAP and Other Financial Measures Disclosure"). Refer to Section 15 – Non-GAAP and other financial measures in the Q2-2025 Management's Discussion and Analysis for further details. Balance Sheet The Company ended the quarter in a strong financial position and solid regulatory capital ratios in all jurisdictions. Total capital margin was $3.1 billion, and in line with Q1-2025, due to strong operating earnings. Adjusted debt-to-total capital ratio stood at 18.4% as at June 30, 2025, a reduction vs. Q1-2025, driven by strong capital generation and the repayment of commercial paper in the quarter. IFC's book value per share (BVPS) of $98.67 as at June 30, 2025 increased 12% year-over-year due to robust earnings over the last 12 months and favourable market movements. BVPS was 3% higher than Q1-2025, driven by strong operating earnings, tempered by foreign exchange impacts. Common Share Dividend The Board of Directors approved the quarterly dividend of $1.33 per share on the Company's outstanding common shares. The common share dividends are payable on September 29, 2025, to shareholders of record on September 15, 2025. Preferred Share Dividends The Board of Directors also approved a quarterly dividend of 30.25625 cents per share on the Company's Class A Series 1 preferred shares, 21.60625 cents per share on the Class A Series 3 preferred shares, 32.5 cents per share on the Class A Series 5 preferred shares, 33.125 cents per share on the Class A Series 6 preferred shares, 37.575 cents per share on the Class A Series 7 preferred shares, 33.75 cents per share on the Class A Series 9 preferred shares, and 32.8125 cents per share on the Class A Series 11 preferred shares. The dividends are payable on September 30, 2025, to shareholders of record on September 15, 2025. Analysts' Estimates The average estimate of earnings per share and net operating income per share for the quarter among the analysts who follow the Company was $3.79 and $4.02, respectively. Management's Discussion and Analysis (MD&A) and Interim Consolidated Financial Statements This Press Release, which was approved by the Company's Board of Directors on the Audit Committee's recommendation, should be read in conjunction with the Q2-2025 MD&A, as well as the Q2-2025 interim condensed consolidated financial statements, which are available on the Company's website at and later today on SEDAR+ at For the definitions of measures and other insurance-related terms used in this Press Release, please refer to the MD&A and to the glossary available in the "Investors" section of the Company's website at Conference Call Details Intact Financial Corporation will host a conference call to review its earnings results tomorrow at 11:00 a.m. ET. To listen to the call via live audio webcast and to view the Company's interim condensed consolidated financial statements, MD&A, presentation slides, Supplementary financial information and other information not included in this Press Release, visit the Company's website at and link to "Investors". The conference call is also available by dialing 416-945-7677 or 1-888-699-1199 (toll-free in North America). Please call 10 minutes before the start of the call. A replay of the call will be available on July 30, 2025 at 2:00 p.m. ET until 11:59 p.m. ET on August 6, 2025. To listen to the replay, call 289-819-1450 or 1-888-660-6345 (toll-free in North America), entry code 88467. A transcript of the call will also be made available on Intact Financial Corporation's website. About Intact Financial Corporation Intact Financial Corporation (TSX: IFC) is the largest provider of Property and Casualty (P&C) insurance in Canada, a leading Specialty lines insurer with international expertise and a leader in Commercial lines in the UK and Ireland. The business has grown organically and through acquisitions to almost $24 billion of total annual operating direct premiums written (DPW). In Canada, Intact distributes insurance under the Intact Insurance brand through agencies and a wide network of brokers, including its wholly- owned subsidiary BrokerLink. Intact also distributes directly to consumers through the belairdirect brand and affinity partnerships. Additionally, Intact provides exclusive and tailored offerings to high-net-worth customers through Intact Prestige. In the US, Intact Insurance Specialty Solutions provides a range of Specialty insurance products and services through independent agencies, regional and national brokers, wholesalers and managing general agencies. Across the UK, Ireland, and Europe, Intact provides Personal, Commercial and/or Specialty insurance solutions through the RSA, NIG and FarmWeb brands. Non-GAAP and other financial measures Non-GAAP financial measures and Non-GAAP ratios (which are calculated using Non-GAAP financial measures) do not have standardized meanings prescribed by IFRS (or GAAP) and may not be comparable to similar measures used by other companies in our industry. Non-GAAP and other financial measures are used by management and financial analysts to assess our performance. Further, they provide users with an enhanced understanding of our financial results and related trends, and increase transparency and clarity into the core results of the business. Non-GAAP financial measures and Non-GAAP ratios used in this Press Release and other Company's financial reports include measures related to our consolidated performance, underwriting performance and financial strength. For more information about these supplementary financial measures, Non-GAAP financial measures, and Non-GAAP ratios, including definitions and explanations of how these measures provide useful information, refer to Section 15 – Non-GAAP and other financial measures in the Q2-2025 MD&A dated July 29th, 2025, which is available on our website at and on SEDAR+ at Q2-2025 Q2-2024 H1-2025 H1-2024 Net income attributable to shareholders, as reported under IFRS 867 750 1,543 1,423 Remove: pre-tax non-operating results 93 128 167 140 Remove: non-operating tax expense (benefit) 3 16 (13) (5) N OI attributable to shareholders 963 894 1,697 1,558 Remove: preferred share dividends and other equity distribution (28) (28) (45) (45) NOI attributable to common shareholders 935 866 1,652 1,513 Divided by weighted-average diluted number of common shares (in millions) 178.7 178.5 178.7 178.5 NOIPS (in dollars) 5.23 4.86 9.25 8.48 NOI attributable to common shareholders for the last 12 months 2,715 2,575 Adjusted average common shareholders' equity, excluding AOCI 16,636 15,151 OROE for the last 12 months 16.3 % 17.0 % Table 2 Reconciliation of underwriting results on a MD&A basis with the interim consolidated financial statements (quarterly) Financial statements F/S 1 2 3 4 5 6 7 8 9 Total MD&A MD&A Quarter ended June 30, 2025 Insurance revenue 6,616 (598) (225) - - - - (111) (57) 5 (986) 5,630 Operating net underwriting revenue Insurance service expense (5,083) 257 232 (150) 7 (58) (215) 112 57 (5) 237 (4,846) Sum of: Operating net claims ($2,917 million) and Operating net underwriting expenses ($1,929 million) Expense from reinsurance contracts (598) 598 - - - - - - - - 598 - n/a Income from reinsurance contracts 257 (257) - - - - - - - - (257) - n/a Insurance service result 1,192 - 7 (150) 7 (58) (215) 1 - - (408) 784 Underwriting income (loss) Quarter ended June 30, 2024 Insurance revenue 6,488 (619) (356) - - - - (207) (12) 7 (1,187) 5,301 Operating net underwriting revenue Insurance service expense (5,196) 365 370 (114) 8 (44) (237) 223 12 (7) 576 (4,620) Sum of: Operating net claims ($2,812 million) and Operating net underwriting expenses ($1,808 million) Expense from reinsurance contracts (619) 619 - - - - - - - - 619 - n/a Income from reinsurance contracts 365 (365) - - - - - - - - (365) - n/a Insurance service result 1,038 - 14 (114) 8 (44) (237) 16 - - (357) 681 Underwriting income (loss) Reconciling items in the table above: Table 3 Reconciliation of underwriting results on a MD&A basis with the interim consolidated financial statements (year-to-date) Financial statements F/S 1 2 3 4 5 6 7 8 9 Total MD&A MD&A Six-month ended June 30, 2025 Insurance revenue 13,269 (1,196) (502) - - - - (308) (105) 26 (2,085) 11,184 Operating net underwriting revenue Insurance service expense (10,670) 650 514 (269) 15 (120) (433) 319 105 (26) 755 (9,915) Sum of: Operating net claims ($6,125 million) and Operating net underwriting expenses ($3,790 million) Expense from reinsurance contracts (1,196) 1,196 - - - - - - - - 1,196 - n/a Income from reinsurance contracts 650 (650) - - - - - - - - (650) - n/a Insurance service result 2,053 - 12 (269) 15 (120) (433) 11 - - (784) 1,269 Underwriting income (loss) Six-month ended June 30, 2024 Insurance revenue 12,999 (1,292) (715) - - - - (488) (32) 22 (2,505) 10,494 Operating net underwriting revenue Insurance service expense (10,554) 679 790 (262) 16 (93) (465) 525 32 (22) 1,200 (9,354) Sum of: Operating net claims ($5,757 million) and Operating net underwriting expenses ($3,597 million) Expense from reinsurance contracts (1,292) 1,292 - - - - - - - - 1,292 - n/a Income from reinsurance contracts 679 (679) - - - - - - - - (679) - n/a Insurance service result 1,832 - 75 (262) 16 (93) (465) 37 - - (692) 1,140 Underwriting income (loss) Reconciling items in the table above: Table 4 Reconciliation of ROE to Net income attributable to shareholders Q2-2025 Q2-2024 H1-2025 H1-2024 Net income attributable to shareholders, as reported under IFRS 867 750 1,543 1,423 Remove: preferred share dividends and other equity distribution (28) (28) (45) (45) Net income attributable to common shareholders 839 722 1,498 1,378 Divided by weighted-average basic number of common shares (in millions) 178.3 178.3 178.3 178.3 EPS, basic (in dollars) 4.71 4.05 8.40 7.73 Divided by weighted-average diluted number of common shares 1 (in millions) 178.7 178.5 178.7 178.5 EPS, diluted (in dollars) 4.70 4.04 8.39 7.72 Net income attributable to common shareholders for the last 12 months 2,327 2,020 Adjusted average common shareholders' equity 16,647 14,698 ROE for the last 12 months 14.0 % 13.7 % 1 Includes the net effect of the exercise of stock options. See Note 16 – Earnings per share to the interim condensed consolidated financial statements for more details. Table 5 Reconciliation of consolidated results on a MD&A basis with the interim condensed consolidated financial statements (quarterly) MD&A captions Pre-tax As presented in the Financial statements Distribution income Total finance costs Other operating income (expense) Operating net investment income Total income taxes Non- operating results Underwriting income (loss) Total F/S caption For the quarter ended June 30, 2025 Insurance service result 43 - 15 - - 200 934 1,192 Net investment income - - - 400 - - - 400 Net gains (losses) on investment portfolio - - - - - 136 - 136 Net insurance financial result - - - - - (197) - (197) Share of profits from investments in associates and joint ventures 42 (4) (2) - (9) (9) - 18 Other net gains (losses) - - - - - (16) - (16) Other income and expense 80 - (65) - - (80) (150) (215) Other finance costs - (57) - - - - - (57) Acquisition, integration and restructuring costs - - - - - (127) - (127) Income tax benefit (expense) - - - - (267) - - (267) Total, as reported in MD&A 165 (61) (52) 400 (276) (93) 784 For the quarter ended June 30, 2024 Insurance service result 28 - 16 - - 199 795 1,038 Net investment income - - - 387 - - - 387 Net gains (losses) on investment portfolio - - - - - (34) - (34) Net insurance financial result - - - - - (195) - (195) Share of profits from investments in associates and joint ventures 52 (3) (1) - (11) (9) - 28 Other net gains (losses) - - - - - 74 - 74 Other income and expense 89 - (75) - - (73) (114) (173) Other finance costs - (54) - - - - - (54) Acquisition, integration and restructuring costs - - - - - (90) - (90) Income tax benefit (expense) - - - - (223) - - (223) Total, as reported in MD&A 169 (57) (60) 387 (234) (128) 681 Table 6 Reconciliation of consolidated results on a MD&A basis with the interim condensed consolidated financial statements (year-to-date) MD&A captions Pre-tax As presented in the Financial statements Distribution income Total finance costs Other operating income (expense) Operating net investment income Total income taxes Non- operating results Underwriting income (loss) Total F/S caption For the six-month period ended June 30, 2025 Insurance service result 108 - 12 - - 395 1,538 2,053 Net investment income - - - 815 - - - 815 Net gains (losses) on investment portfolio - - - - - 222 - 222 Net insurance financial result - - - - - (437) - (437) Share of profits from investments in associates and joint ventures 84 (7) (1) - (18) (18) - 40 Other net gains (losses) - - - - - 24 - 24 Other income and expense 90 - (90) - - (157) (269) (426) Other finance costs - (112) - - - - - (112) Acquisition, integration and restructuring costs - - - - - (196) - (196) Income tax benefit (expense) - - - - (440) - - (440) Total, as reported in MD&A 282 (119) (79) 815 (458) (167) 1,269 For the six-month period ended June 30, 2024 Insurance service result 71 - 22 - - 337 1,402 1,832 Net investment income - - - 767 - - - 767 Net gains (losses) on investment portfolio - - - - - (74) - (74) Net insurance financial result - - - - - (292) - (292) Share of profits from investments in associates and joint ventures 90 (8) 1 - (18) (15) - 50 Other net gains (losses) - - - - - 254 - 254 Other income and expense 108 - (111) - - (147) (262) (412) Other finance costs - (111) - - - - - (111) Acquisition, integration and restructuring costs - - - - - (203) - (203) Income tax benefit (expense) - - - - (380) - - (380) Total, as reported in MD&A 269 (119) (88) 767 (398) (140) 1,140 Table 7 Reconciliation of AEPS and AROE to Net income attributable to shareholders Q2-2025 Q2-2024 H1-2025 H1-2024 Net income attributable to shareholders, as reported under IFRS 867 750 1,543 1,423 Remove acquisition-related items, after tax Amortization of acquired intangible assets 61 56 122 113 Acquisition and integration costs 56 41 86 96 Tax adjustments on acquisition-related items 7 3 8 3 Net result from claims acquired in a business combination 1 (1) 1 1 Adjusted net income attributable to shareholders 992 849 1,760 1,636 Remove: preferred share dividends and other equity distribution (28) (28) (45) (45) Adjusted net income attributable to common shareholders 964 821 1,715 1,591 Divided by weighted-average diluted number of common shares (in millions) 178.7 178.5 178.7 178.5 AEPS (in dollars) 5.39 4.61 9.59 8.91 Adjusted net income attributable to common shareholders for the last 12 months 2,744 2,453 Adjusted average common shareholders' equity 16,647 14,698 AROE for the last 12 months 16.5 % 16.7 % Table 8 Calculation of BVPS and BVPS (excluding AOCI) As at June 30, 2025 2024 Equity attributable to shareholders, as reported under IFRS 19,216 17,315 Remove: Preferred shares and other equity, as reported under IFRS (1,619) (1,619) Common shareholders' equity 17,597 15,696 Remove: AOCI, as reported under IFRS (260) 238 Common shareholders' equity (excluding AOCI) 17,337 15,934 Number of common shares outstanding at the same date (in millions) 178.3 178.4 BVPS 98.67 88.00 BVPS (excluding AOCI) 97.21 89.33 Table 9 Adjusted average common shareholders' equity and Adjusted average common shareholders' equity, excluding AOCI 1 June 30, 2024 figure represents the net weighted impact of the September 13, 2023 significant capital transaction. Table 10 Reconciliation of Total debt outstanding before hybrid subordinated notes and Total capital to Debt outstanding, Equity attributable to shareholders and Equity attributable to NCI As at June 30, 2025 March 31, 2025 December 31, 2024 Debt outstanding, as reported under IFRS 4,643 4,728 4,681 Remove: hybrid subordinated notes (247) (247) (247) Total debt outstanding before hybrid subordinated notes 4,396 4,481 4,434 Debt outstanding, as reported under IFRS 4,643 4,728 4,681 Equity attributable to shareholders, as reported under IFRS 19,216 18,768 18,148 Adjusted total capital 23,859 23,496 22,829 Total debt outstanding before hybrid subordinated notes 4,396 4,481 4,434 Adjusted total capital 23,859 23,496 22,829 Adjusted debt-to-total capital ratio 18.4 % 19.1 % 19.4 % Debt outstanding, as reported under IFRS 4,643 4,728 4,681 Preferred shares and other equity, as reported under IFRS 1,619 1,619 1,619 Debt outstanding and preferred shares (including NCI) 6,262 6,347 6,300 Adjusted total capital 23,859 23,496 22,829 Total leverage ratio 26.2 % 27.0 % 27.6 % Adjusted debt-to-total capital ratio 18.4 % 19.1 % 19.4 % Preferred shares and hybrids 7.8 % 7.9 % 8.2 % Forward Looking Statements Certain statements made in this news release are forward-looking statements. These statements include, without limitation, statements relating to the outlook for the Property and Casualty insurance industry in Canada, the U.S. and the U.K., the Company's business outlook, the Company's growth prospects and the integration of Direct Line Insurance Group plc's brokered Commercial lines operations. All such forward-looking statements are made pursuant to the 'safe harbour' provisions of applicable Canadian securities laws. Forward-looking statements, by their very nature, are subject to inherent risks and uncertainties and are based on several assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements as a result of various factors, including those discussed in the Company's most recently filed Annual Information Form dated February 11, 2025 and available on SEDAR+ at As a result, we cannot guarantee that any forward-looking statement will materialize and we caution you against relying on any of these forward-looking statements. Except as may be required by Canadian securities laws, we do not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Please read the cautionary note at the beginning of the Q2-2025 MD&A. SOURCE Intact Financial Corporation
Cision Canada
06-05-2025
- Business
- Cision Canada
Intact Financial Corporation reports Q1-2025 results Français
, /CNW/ - Highlights Operating DPW 1,2 grew 3%, attributable to continued momentum in Personal lines Combined ratio 1 was solid at 91.3%, remaining stable year-over-year despite 2.5 points of higher catastrophe losses Net operating income per share 1 increased 10% to $4.01 driven by solid underwriting results, as well as investment and distribution income increasing 9% and 17%, respectively BVPS 1 increased 4% sequentially and 13% year-over-year to $96.16, with solid EPS of $3.69 in the quarter Operating ROE 1 of 16.5% (ROE 1 of 13.7%) with a strong and resilient balance sheet, including $3.1 billion of total capital margin 1 Charles Brindamour, Chief Executive Officer, said: "We had a strong start to 2025 across our business, with a solid underwriting performance and double-digit NOIPS growth. In the context of economic uncertainties, our organization is highly resilient and well-positioned to succeed. This is demonstrated through an operating ROE of 16.5% and book value per share growth of 13% year-over-year. We are on track to continue achieving our financial objectives to exceed the industry ROE by 500 basis points and grow NOIPS 10% annually over time, while also delivering on our promise to our customers, brokers, employees." Consolidated Highlights (in millions of Canadian dollars except as otherwise noted) Q1-2025 Q1-2024 Change Operating direct premiums written 1 2 5,364 5,110 3 % Combined ratio 1 91.3 % 91.2 % 0.1 pts Underwriting income (loss) 1 485 459 6 % Operating net investment income 415 380 9 % Distribution income 1 117 100 17 % Net operating income attributable to common shareholders 1 717 647 11 % Net income 676 673 - % Per share measures (in dollars) Net operating income per share (NOIPS) 1,3 $4.01 $3.63 10 % Earnings per share (EPS) – diluted 3 $3.69 $3.68 - % Book value per share 1 $96.16 $84.76 13 % Return on equity for the last 12 months Operating ROE 1 16.5 % 14.3 % 2.2 pts Adjusted ROE 1 16.1 % 13.5 % 2.6 pts ROE 1 13.7 % 10.6 % 3.1 pts Capital management Total capital margin 1 3,099 2,654 445 Adjusted debt-to-total capital ratio 1 19.1 % 20.5 % (1.4) pts 12-Month Industry Outlook We expect the current insurance market conditions to persist, mainly due to catastrophe loss trends and uncertainty driven by geopolitical conflicts: In both Personal auto and property, we expect low double-digit premium growth; and In Commercial and Specialty lines across all geographies, we expect mid-single-digit premium growth. ____________________________________________ 1 This release contains Non-GAAP financial measures, Non-GAAP ratios and other financial measures (each as defined in National Instrument 52-112 "Non-GAAP and Other Financial Measures Disclosure"). Refer to Section 15 – Non-GAAP and other financial measures in the Q1-2025 Management's Discussion and Analysis for further details. 2 DPW change (growth) is presented in constant currency. 3 Per share metric is calculated based on the weighted-average diluted number of common shares. Segment Results Q1-2025 Consolidated Performance Overall operating DPW growth was 3% and attributable to rate actions as well as unit growth in Personal lines. Within Commercial lines, growth was led by mid-single digit rates in the majority of our portfolio, while we continue to see pressure in large accounts. Combined ratio was solid at 91.3% and remained comparable to last year, despite 2.5 points of higher catastrophe losses. This is a result of our strong underlying performance in Canada and in the US, along with healthy favourable prior year development, particularly in Commercial lines. Operating net investment income increased 9% from last year to $415 million, primarily due to higher book yields, non-recurring distributions of $9 million and favourable foreign currency movements. Distribution income increased by 17% from last year to $117 million, reflecting organic growth, increased margins in BrokerLink and M&A activities. Lines of Business P&C Canada Personal auto operating DPW increased by 11%, reflecting rate actions and 2% unit growth in hard market conditions. The combined ratio of 97.5% was in line with our full year sub-95 expectations, when adjusted for approximately 4 points of impact from seasonality and harsher- than-normal winter conditions. Personal property operating DPW grew by 9%, primarily due to rates coupled with 1% unit growth in hard market conditions. The combined ratio remained solid at 88.9%, but increased from last year, due to higher catastrophe losses and severe winter conditions in the quarter. Commercial lines operating DPW growth was 1%, driven by mid-single-digit rates in most lines. We continue to see increased competition in large accounts. The combined ratio was very strong at 81.2% for the quarter, 6.1 points better than last year, driven by robust underlying performance and favourable prior-year development. P&C UK&I 2 Operating DPW decreased 4%, as we continue to take remediation actions in the DLG portfolio and see continued competition in large accounts. In aggregate, pricing was in the mid-single digits and new business remained solid. The combined ratio of 97.6% included elevated weather-related catastrophe losses in the quarter. We remain well positioned to evolve the combined ratio towards 90% in 2026. P&C US 2 Operating DPW decreased 3%, reflecting a 5-point negative impact from the non-renewal of a large account. Growth in aggregate reflected varying rate momentum, with mid-single digit rates or better across the majority of lines. The combined ratio remained strong at 86.8% for the quarter, despite the impact of high CAT losses, reflecting our continued focus on profitability. __________________________________________ 1 This release contains Non-GAAP financial measures, Non-GAAP ratios and other financial measures (each as defined in National Instrument 52-112 "Non-GAAP and Other Financial Measures Disclosure"). Refer to Section 15 – Non-GAAP and other financial measures in the Q1-2025 Management's Discussion and Analysis for further details. 2 DPW change (growth) is presented in constant currency. Net Operating Income, EPS and ROE Net operating income attributable to common shareholders increased 11% to $717 million, driven by solid underwriting performance, as well as higher investment and distribution income. Earnings per share was solid at $3.69 in the quarter, driven by strong operating income and non-significant non-operating losses overall. Operating ROE of 16.5% reflected strong performance across our lines of business and geographies over the last 12 months. Adjusted ROE of 16.1% and ROE of 13.7% improved 3 points from last year, primarily due to higher operating earnings coupled with lower exited lines and restructuring costs. Balance Sheet The Company ended the quarter in a strong financial position with a total capital margin of $3.1 billion, up $0.2 billion from last quarter, and solid regulatory capital ratios in all jurisdictions. Adjusted debt-to-total capital ratio stood at 19.1% as at March 31, 2025, an improvement vs. Q4-2024, driven by strong capital generation in the quarter. IFC's book value per share (BVPS) of $96.16 as at March 31, 2025 increased 13% year-over-year, and was 4% higher than Q4-2024, driven by solid earnings and favourable market movements in our debt securities portfolio. Common Share Dividend The Board of Directors approved the quarterly dividend of $1.33 per share on the Company's outstanding common shares. The common share dividends are payable on June 30, 2025, to shareholders of record on June 16, 2025. Preferred Share Dividends The Board of Directors also approved a quarterly dividend of 30.25625 cents per share on the Company's Class A Series 1 preferred shares, 21.60625 cents per share on the Class A Series 3 preferred shares, 32.5 cents per share on the Class A Series 5 preferred shares, 33.125 cents per share on the Class A Series 6 preferred shares, 37.575 cents per share on the Class A Series 7 preferred shares, 33.75 cents per share on the Class A Series 9 preferred shares, and 32.8125 cents per share on the Class A Series 11 preferred shares. The dividends are payable on June 30, 2025, to shareholders of record on June 16, 2025. Analysts' Estimates The average estimate of earnings per share and net operating income per share for the quarter among the analysts who follow the Company was $3.17 and $3.54, respectively. _________________________________________________________________________________________________________ Social Impact & ESG Report IFC also announced that its 2024 Social Impact & ESG Report is available at The report also includes the 2024 public accountability statement for Intact and its applicable subsidiaries. The report details how Intact is delivering on its social impact mandate and how ESG considerations are embedded in the organization's strategy and its three objectives: having customers as advocates, engaged employees, and being a most respected company. The report also details progress on Intact's Climate Strategy and Resilience Barometer. Management's Discussion and Analysis (MD&A) and Interim Consolidated Financial Statements This Press Release, which was approved by the Company's Board of Directors on the Audit Committee's recommendation, should be read in conjunction with the Q1-2025 MD&A, as well as the Q1-2025 interim condensed consolidated financial statements, which are available on the Company's website at and later today on SEDAR+ at For the definitions of measures and other insurance-related terms used in this Press Release, please refer to the MD&A and to the glossary available in the "Investors" section of the Company's website at Conference Call Details Intact Financial Corporation will host a conference call to review its earnings results tomorrow at 11:00 a.m. ET. To listen to the call via live audio webcast and to view the Company's interim condensed consolidated financial statements, MD&A, presentation slides, Supplementary financial information and other information not included in this Press Release, visit the Company's website at and link to "Investors". The conference call is also available by dialing 416-945-7677 or 1-888-699-1199 (toll-free in North America). Please call 10 minutes before the start of the call. A replay of the call will be available on May 7, 2025 at 2:00 p.m. ET until 11:59 p.m. ET on May 14, 2025. To listen to the replay, call 289-819-1450 or 1-888-660-6345 (toll-free in North America), entry code 27846. A transcript of the call will also be made available on Intact Financial Corporation's website. About Intact Financial Corporation Intact Financial Corporation (TSX: IFC) is the largest provider of Property and Casualty (P&C) insurance in Canada, a leading Specialty lines insurer with international expertise and a leader in Commercial lines in the UK and Ireland. The business has grown organically and through acquisitions to almost $24 billion of total annual operating direct premiums written (DPW). In Canada, Intact distributes insurance under the Intact Insurance brand through agencies and a wide network of brokers, including its wholly- owned subsidiary BrokerLink. Intact also distributes directly to consumers through the belairdirect brand and affinity partnerships. Additionally, Intact provides exclusive and tailored offerings to high-net-worth customers through Intact Prestige. In the US, Intact Insurance Specialty Solutions provides a range of Specialty insurance products and services through independent agencies, regional and national brokers, wholesalers and managing general agencies. Across the UK, Ireland, and Europe, Intact provides Personal, Commercial and/or Specialty insurance solutions through the RSA, NIG and FarmWeb brands. Non-GAAP and other financial measures Non-GAAP financial measures and Non-GAAP ratios (which are calculated using Non-GAAP financial measures) do not have standardized meanings prescribed by IFRS (or GAAP) and may not be comparable to similar measures used by other companies in our industry. Non-GAAP and other financial measures are used by management and financial analysts to assess our performance. Further, they provide users with an enhanced understanding of our financial results and related trends, and increase transparency and clarity into the core results of the business. Non-GAAP financial measures and Non-GAAP ratios used in this Press Release and other Company's financial reports include measures related to our consolidated performance, underwriting performance and financial strength. For more information about these supplementary financial measures, Non-GAAP financial measures, and Non-GAAP ratios, including definitions and explanations of how these measures provide useful information, refer to Section 15 – Non-GAAP and other financial measures in the Q1-2025 MD&A dated May 6, 2025, which is available on our website at and on SEDAR+ at Table 2 Reconciliation of underwriting results on a MD&A basis with the interim consolidated financial statements Financial statements F/S 1 2 3 4 5 6 7 8 9 Total MD&A MD&A Quarter ended March 31, 2025 Insurance revenue 6,653 (598) (277) (197) (48) 21 (1,099) 5,554 Operating net underwriting revenue Insurance service expense (5,587) 393 282 (119) 8 (62) (218) 207 48 (21) 518 (5,069) Sum of: Operating net claims ($3,208 million) and Operating net underwriting expenses ($1,861 million) Expense from reinsurance contracts (598) 598 598 - n/a Income from reinsurance contracts 393 (393) (393) - n/a Insurance service result 861 - 5 (119) 8 (62) (218) 10 - - (376) 485 Underwriting income (loss) Quarter ended March 31, 2024 Insurance revenue 6,511 (673) (359) (281) (20) 15 (1,318) 5,193 Operating net underwriting revenue Insurance service expense (5,358) 314 420 (148) 8 (49) (228) 302 20 (15) 624 (4,734) Sum of: Operating net claims ($2,945 million) and Operating net underwriting expenses ($1,789 million) Expense from reinsurance contracts (673) 673 673 - n/a Income from reinsurance contracts 314 (314) (314) - n/a Insurance service result 794 - 61 (148) 8 (49) (228) 21 - - (335) 459 Underwriting income (loss) Reconciling items in the table above: Table 3 Reconciliation of ROE to Net income attributable to shareholders Q1-2025 Q1-2024 Net income attributable to shareholders, as reported under IFRS 676 673 Remove: preferred share dividends and other equity distribution (17) (17) Net income attributable to common shareholders 659 656 Divided by weighted-average basic number of common shares (in millions) 178.3 178.3 EPS, basic (in dollars) 3.70 3.68 Divided by weighted-average diluted number of common shares 1 (in millions) 178.7 178.3 EPS, diluted (in dollars) 3.69 3.68 Net income attributable to common shareholders for the last 12 months 2,210 1,527 Adjusted average common shareholders' equity 16,135 14,397 ROE for the last 12 months 13.7 % 10.6 % Table 4 Reconciliation of consolidated results on a MD&A basis with the interim condensed consolidated financial statements MD&A captions Pre-tax As presented in the Financial statements Distribution income Total finance costs Other operating income (expense) Operating net investment income Total income taxes Non- operating results Underwriting income (loss) Total F/S caption For the quarter ended March 31, 2025 Insurance service result 65 - (3) - - 195 604 861 Net investment income - - - 415 - - - 415 Net gains (losses) on investment portfolio - - - - - 86 - 86 Net insurance financial result - - - - - (240) - (240) Share of profits from investments in associates and joint ventures 42 (3) 1 - (9) (9) - 22 Other net gains (losses) - - - - - 40 - 40 Other income and expense 10 - (25) - - (77) (119) (211) Other finance costs - (55) - - - - (55) Acquisition, integration and restructuring costs - - - - - (69) - (69) Income tax benefit (expense) - - - - (173) - - (173) Total, as reported in MD&A 117 (58) (27) 415 (182) (74) 485 For the quarter ended March 31, 2024 Insurance service result 43 - 6 - - 138 607 794 Net investment income - - - 380 - - - 380 Net gains (losses) on investment portfolio - - - - - (40) - (40) Net insurance financial result - - - - - (97) - (97) Share of profits from investments in associates and joint ventures 38 (5) 2 - (7) (6) - 22 Other net gains (losses) - - - - - 180 - 180 Other income and expense 19 - (36) - - (74) (148) (239) Other finance costs - (57) - - - - - (57) Acquisition, integration and restructuring costs - - - - - (113) - (113) Income tax benefit (expense) - - - - (157) - - (157) Total, as reported in MD&A 100 (62) (28) 380 (164) (12) 459 Table 5 Reconciliation of AEPS and AROE to Net income attributable to shareholders Q1-2025 Q1-2024 Net income attributable to shareholders, as reported under IFRS 676 673 Remove acquisition-related items, after tax Amortization of acquired intangible assets 61 57 Acquisition and integration costs 30 55 Tax adjustments on acquisition-related items 1 - Net result from claims acquired in a business combination - 2 Adjusted net income attributable to shareholders 768 787 Remove: preferred share dividends and other equity distribution (17) (17) Adjusted net income attributable to common shareholders 751 770 Divided by weighted-average diluted number of common shares (in millions) 178.7 178.3 AEPS (in dollars) 4.21 4.31 Adjusted net income attributable to common shareholders for the last 12 months 2,601 1,950 Adjusted average common shareholders' equity 16,135 14,397 AROE for the last 12 months 16.1 % 13.5 % Table 6 Calculation of BVPS and BVPS (excluding AOCI) As at March 31, 2025 2024 Equity attributable to shareholders, as reported under IFRS 18,768 16,740 Remove: Preferred shares and other equity, as reported under IFRS (1,619) (1,619) Common shareholders' equity 17,149 15,121 Remove: AOCI, as reported under IFRS (399) 292 Common shareholders' equity (excluding AOCI) 16,750 15,413 Number of common shares outstanding at the same date (in millions) 178.3 178.4 BVPS 96.16 84.76 BVPS (excluding AOCI) 93.92 86.39 Table 7 Adjusted average common shareholders' equity and Adjusted average common shareholders' equity, excluding AOCI 1 March 31, 2024 figure represents the net weighted impact of the September 13, 2023 significant capital transaction. Table 8 Reconciliation of Total debt outstanding before hybrid subordinated notes and Total capital to Debt outstanding, Equity attributable to shareholders and Equity attributable to NCI As at March 31, 2025 Dec. 31, 2024 Debt outstanding, as reported under IFRS 4,728 4,681 Remove: hybrid subordinated notes (247) (247) Total debt outstanding before hybrid subordinated notes 4,481 4,434 Debt outstanding, as reported under IFRS 4,728 4,681 Equity attributable to shareholders, as reported under IFRS 18,768 18,148 Preferred shares from Equity attributable to non-controlling interests - - Adjusted total capital 23,496 22,829 Total debt outstanding before hybrid subordinated notes 4,481 4,434 Adjusted total capital 23,496 22,829 Adjusted debt-to-total capital ratio 19.1 % 19.4 % Debt outstanding, as reported under IFRS 4,728 4,681 Preferred shares and other equity, as reported under IFRS 1,619 1,619 Preferred shares from Equity attributable to non-controlling interests - - Debt outstanding and preferred shares (including NCI) 6,347 6,300 Adjusted total capital 23,496 22,829 Total leverage ratio 27.0 % 27.6 % Adjusted debt-to-total capital ratio 19.1 % 19.4 % Preferred shares and hybrids 7.9 % 8.2 % Forward Looking Statements Certain statements made in this news release are forward-looking statements. These statements include, without limitation, statements relating to the outlook for the Property and Casualty insurance industry in Canada, the U.S. and the U.K., the Company's business outlook, the Company's growth prospects and the integration of Direct Line Insurance Group plc's brokered Commercial lines operations. All such forward-looking statements are made pursuant to the 'safe harbour' provisions of applicable Canadian securities laws. Forward-looking statements, by their very nature, are subject to inherent risks and uncertainties and are based on several assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements as a result of various factors, including those discussed in the Company's most recently filed Annual Information Form dated February 11, 2025 and available on SEDAR+ at As a result, we cannot guarantee that any forward-looking statement will materialize and we caution you against relying on any of these forward-looking statements. Except as may be required by Canadian securities laws, we do not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Please read the cautionary note at the beginning of the Q1-2025 MD&A. SOURCE Intact Financial Corporation
