- Net Operating Income Growth: Q4 net operating income per share rose 12% to $5.50, with full-year growth of 33% to $19.21, reflecting 18% CAGR over 3 years and 12% over a decade.
- Underwriting Performance: Q4 combined ratio improved 0.6 points to 85.9%, with full-year improvement of 4 points to 88.2%, driven by superior risk selection and market scale in SME/mid-market Commercial lines (70% of portfolio).
- Operating ROE Strength: Operating ROE reached 19.5% in 2025, with CEO projecting structural shift to "upper teens" ROE, outperforming industry's 10% target by 500+ basis points.
- Capital Deployment Flexibility: $3.7 billion in capital margin allows $4–$5 billion in M&A deals before equity raises, with 20% debt-to-total-capital target for leverage optimization.
- Dividend Growth: Quarterly dividend increased 11% to $1.47, marking 21st consecutive annual raise, alongside 8% organic growth target through 2030 and mid-single-digit top-line growth in 2025.
Segment Performance
In Canada, personal auto premiums grew 9% in the quarter, despite a challenging industry environment. The company's underlying loss ratio improved 1.3 points year-over-year. Commercial lines in Canada saw premium growth of 1%, with growth initiatives in the SME and mid-market space gaining traction. In the UK&I, premiums were 2% lower year-over-year, but the company expects top-line growth to continue improving in '26. In the U.S., premiums were up 5% year-over-year, driven by growth initiatives and a diversified product range.
Valuation and Outlook
With a Price-to-Book Ratio (P/B) of 2.26 and a Dividend Yield of 2.1%, Intact Financial Corporation is trading at a reasonable valuation relative to its peers. The company's ROE of 19.5% in 2025 demonstrates its ability to generate strong returns on equity. As Charles Brindamour noted, "We're pleased to increase dividends by 11% to $1.47 per quarter, our 21st annual dividend increase." The company's organic growth outlook is expected to be in the mid-single-digit range this year, with potential for margin expansion and distribution roll-up to drive growth.
Capital Deployment and M&A
Intact Financial Corporation is well-positioned to deploy capital, with $3.7 billion of capital margin available for M&A or share buybacks. The company is targeting a 20% debt-to-total-capital ratio and is patiently waiting for highly accretive transactions. As Charles Brindamour stated, "We're seeing a constructive M&A environment, which bodes well for outperforming the 10 points of earnings growth in the next decade."