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1. Company Snapshot

1.a. Company Description

Intact Financial Corporation, through its subsidiaries, provides property and casualty insurance products to individuals and businesses in Canada, the United States, the United Kingdom, Ireland, rest of Europe, and the Middle East.It offers personal auto insurance; insurance for motor homes, recreational vehicles, motorcycles, snowmobiles, and all-terrain vehicles; personal property insurance, such as protection for homes and contents from risks, including fire, theft, vandalism, water damage, and other damages, as well as personal liability coverage; and property coverage for tenants, condominium owners, non-owner occupied residences, and seasonal residences.The company also provides insurance products for commercial lines for a group of small and medium sized businesses; commercial property insurance for the protection of physical assets of the business; and liability coverages comprising commercial general, product, and professional liability, as well as cyber endorsement.


In addition, it offers commercial vehicle insurance coverages for the protection for commercial auto, fleets, garage operations, light trucks, public vehicles, and the specific needs of the sharing economy.Further, the company provides various personal levels of coverage to customers for their home, motor, pet, and other insurance products; general insurance, specialty lines, and risk management solutions; specialty insurance products for various product and customer groups, including accident and health, technology, ocean and inland marine, public entities, and entertainment, as well as financial services and institutions; and various products to specialty property, surety, tuition reimbursement, management liability, cyber, and environmental institutions.The company was formerly known as ING Canada Inc.


and changed its name to Intact Financial Corporation in 2009.Intact Financial Corporation was founded in 1809 and is based in Toronto, Canada.

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1.b. Last Insights on IFC

Intact Financial Corporation's recent performance was driven by a robust Q4 earnings report, which exceeded expectations. The company's revenue grew 2.6% year-over-year to CA$29.4 billion, while net operating income per share increased by 23%. Additionally, Intact raised its dividend by 10% to CA$1.33, reflecting its confidence in the business. The company also successfully issued $300 million in medium-term notes, further solidifying its financial position.

1.c. Company Highlights

2. Intact Financial Corporation Delivers Strong Q4 2025 Results

Intact Financial Corporation reported a robust Q4 2025, with net operating income per share rising 12% to $5.50, beating analyst estimates of $4.64. The company's full-year net operating income per share grew 33% to $19.21. The strong performance was driven by solid organic growth, margin expansion, and accretive capital deployment. The combined ratio for Q4 was 85.9%, a 0.6-point improvement from last year, while the full-year combined ratio of 88.2% improved by 4 points. Earnings per share (EPS) came in at $5.44.

Publication Date: Feb -12

📋 Highlights
  • 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."

3. NewsRoom

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Intact Financial Q4 Earnings Call Highlights

Feb -12

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Intact Financial Corp (IFCZF) Q4 2025 Earnings Call Highlights: Strong Income Growth and ...

Feb -11

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Is Intact Financial (TSX:IFC) Priced Attractive After Recent Insurance Sector Reassessment?

Feb -11

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TD Raises Price Target on Intact Financial, Raymond James Lowers

Feb -11

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Intact Financial Books Strong Q4 Earnings Beat, Lifts Dividend By 11%

Feb -10

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AM Best Affirms Credit Ratings of RSA Insurance Group Limited’s Subsidiaries

Jan -29

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Customers get more with GatherGuard® - Event Insurance and Accident Medical Expense Coverage

Jan -28

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Media Advisory - Intact Financial Corporation to announce 2025 fourth quarter results on February 10, 2026 and hold earnings conference call the following day

Jan -26

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.79%)

6. Segments

Canada

Expected Growth: None%

None

UK & International (UK&I)

Expected Growth: None%

None

U.S.

Expected Growth: None%

None

Corporate

Expected Growth: None%

None

Unallocated Net Underwriting Revenue from Exited Lines

Expected Growth: None%

None

Unallocated Other Income Included in Operating Net Underwriting Expenses

Expected Growth: None%

None

Unallocated Assumed Commissions and Premium Adjustment

Expected Growth: None%

None

Unallocated Net Insurance Revenue from Retroactive Reinsurance Contracts

Expected Growth: None%

None

7. Detailed Products

Home Insurance

Provides financial protection to homeowners in the event of damage to their property or liability for accidents that occur on their property.

Auto Insurance

Provides financial protection to vehicle owners in the event of accidents, theft, or other damages to their vehicle.

Business Insurance

Provides financial protection to business owners in the event of unexpected events such as accidents, theft, or natural disasters.

Travel Insurance

Provides financial protection to travelers in the event of unexpected events such as trip cancellations, interruptions, or medical emergencies.

Life Insurance

Provides a financial safety net for loved ones in the event of a policyholder's death.

8. Intact Financial Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Intact Financial Corporation is medium due to the presence of alternative financial products and services offered by competitors.

Bargaining Power Of Customers

The bargaining power of customers for Intact Financial Corporation is low due to the company's strong brand reputation and diversified product offerings.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Intact Financial Corporation is medium due to the company's dependence on a few large suppliers for certain products and services.

Threat Of New Entrants

The threat of new entrants for Intact Financial Corporation is low due to the high barriers to entry in the financial services industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry for Intact Financial Corporation is high due to the competitive nature of the financial services industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 26.18%
Debt Cost 5.24%
Equity Weight 73.82%
Equity Cost 6.61%
WACC 6.25%
Leverage 35.46%

11. Quality Control: Intact Financial Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Manulife

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Value: 6.7

Growth: 3.9

Quality: 6.7

Yield: 8.0

Momentum: 7.0

Volatility: 9.7

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Cincinnati Financial

A-Score: 6.8/10

Value: 6.2

Growth: 6.4

Quality: 7.8

Yield: 4.0

Momentum: 7.0

Volatility: 9.3

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Fairfax Financial Holdings

A-Score: 6.8/10

Value: 7.4

Growth: 6.9

Quality: 6.6

Yield: 2.0

Momentum: 8.5

Volatility: 9.3

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Intact Financial

A-Score: 6.5/10

Value: 5.2

Growth: 6.1

Quality: 6.5

Yield: 4.0

Momentum: 7.5

Volatility: 10.0

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Progressive

A-Score: 6.1/10

Value: 6.0

Growth: 8.6

Quality: 7.3

Yield: 3.0

Momentum: 2.5

Volatility: 9.0

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Truist

A-Score: 5.7/10

Value: 4.7

Growth: 2.8

Quality: 5.7

Yield: 8.0

Momentum: 5.0

Volatility: 8.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

260.4$

Current Price

260.4$

Potential

-0.00%

Expected Cash-Flows