Intact Financial (IFC) 25th Annual Scotiabank Financials Summit 2024 summary

Financial performance and ROE outlook

• ROE closed Q2 at around 17%, with expectations to finish the year above 15% despite natural disaster impacts.

• Sustained ROE outperformance is driven by a shift to 60% commercial and specialty lines, expanded scale in Canada, and strong investment/distribution income.

• Investment and distribution income now contribute close to CAD 500 million, supporting a robust ROE base.

• The company is focused on maintaining and expanding ROE outperformance, not viewing current levels as a peak.

Growth opportunities and strategic focus

• Leadership expansion in Canada leverages brand, digital, and distribution strengths.

• Specialty lines, now CAD 6 billion in revenue, offer significant growth potential with sub-90% combined ratios.

• U.K. business is improving, with ROE migrating toward mid-teens and growth in commercial lines.

• Accelerating advanced pricing and risk selection models is a key focus for future ROE advantage.

Impact of extreme weather and product evolution

• Q3 saw a one-in-30-year natural disaster event, but operational resilience and customer experience remained strong.

• The market for property insurance is expected to harden further, presenting growth opportunities.

• Home insurance has maintained a 90% combined ratio over a decade, with expanded coverage and rising demand.

• On Side, a supply chain business, is growing rapidly and is expected to double in five years.

• Prevention and risk mitigation are emerging as new monetizable areas.