Intact Financial (IFC) National Bank Financial 23rd Annual Canadian Financial Services Conference summary

Leadership transition and strategic focus

• New CFO brings 17 years of experience and aims for continuity in leadership and strategy.

• Strategic objectives include customer advocacy, workforce engagement, and financial performance.

• Targets are 500 basis points of ROE outperformance and 10% annual net operating income per share growth.

Financial and operational performance

• 2024 operating ROE was 16.5% despite catastrophe losses; strong momentum into 2025.

• Personal Auto achieved sub-95 combined ratio with double-digit growth; industry remains unprofitable.

• Personal Property maintained a sub-90 combined ratio over five and ten years, with advanced pricing and prevention strategies.

• Commercial lines posted sub-90 combined ratio and mid single-digit growth; U.S. operations at 87-88% combined ratio.

• U.K. integration of Direct Line progressing well, aiming to improve combined ratio from 92% to 90% over 24 months.

Business line insights and risk management

• Personal Auto growth driven by rate increases and emerging unit growth; Alberta remains a challenging market.

• Key risks in Auto include long-tail reserving, Alberta's regulatory environment, and tariffs; conservative reserving and limited import exposure mitigate risks.

• Personal Property leverages peril-specific pricing, product evolution, and prevention partnerships to sustain performance.

• Reinsurance strategy focuses on tail risk, with increased retention offset by aggregate cover for frequent events.