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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 Q3 2025 Results

Intact Financial Corporation reported a robust Q3 2025, with net operating income per share (NOIPS) of $4.46, driven by a 6% top-line growth and a sub-90 combined ratio. The operating return on equity (ROE) improved to 20%, outperforming across all regions. The actual EPS came out at $4.5, beating estimates of $4.36. Revenue growth was fueled by an 11% increase in personal auto premiums and a 10% rise in personal property premiums in Canada, while commercial lines premium growth was 3%. The company's investments in AI have generated over $150 million in annual recurring benefits, primarily from optimizing pricing, risk selection, and data leverage.

Publication Date: Nov -06

📋 Highlights
  • Strong Earnings Performance: Achieved net operating income per share of $4.46, driven by 6% revenue growth and a combined ratio of 84.2% (sub-90).
  • Operating Efficiency: Operating ROE improved to 20%, with a 1-point better underlying loss ratio of 54% compared to prior year.
  • AI-Driven Growth: AI investments generated $150M+ in annual recurring benefits via pricing, risk selection, and data optimization.
  • Capital Allocation: Repurchased 535,000 shares ($145M) and maintained debt-to-capital ratio at 17.9%, below the 20% target.
  • Regional Premium Growth: Canada personal auto (+11%) and property (+10%) led growth, while US premiums rose 8%, driven by specialty lines.

Segmental Performance

The company's segmental performance was mixed, with the UK&I business seeing a 5% decline in premiums, while the US premiums grew 8%. The US business reported an 8% growth rate, driven by specialty lines such as Surety, Cyber, and Accident and Health, which are growing at over 20%. The Canadian market continues to show strength, with personal auto premiums growing 11% over eight consecutive quarters. Guillaume Lamy notes that the Canadian market is different from the US, with a heavier weighting towards liability coverage and a more stringent regulatory framework.

Underwriting Profitability

The company's underwriting profitability remains strong, with a consolidated combined ratio of 89.8 and a solid underlying loss ratio of 54%, 1 point better than last year. Catastrophes in the quarter totaled $394 million, while favorable prior year development was 5.2%. The company's investments in competitive advantages, pricing, risk selection, and claims have contributed to its ability to sustain an ROE above mid-teens.

Valuation and Outlook

With a Price-to-Book Ratio (P/B) of 2.5, the market is pricing in a certain level of growth and profitability. Given the company's strong track record of delivering on its financial objectives, including outperforming the industry ROE by at least 500 basis points, and its guidance for 10% annual NOIPS growth, the current valuation appears reasonable. Analysts estimate next year's revenue growth at 6.1%, which is slightly below the company's historical growth rate. The company's dividend yield of 1.93% provides a stable source of return for investors.

Growth Initiatives

The company is well-positioned to achieve its financial objectives, with a strong distribution business and investment portfolio providing healthy returns. The recent expansion of their underwriting adviser has resulted in a 20% increase in quotes. Charles Brindamour notes that the company has tools to generate more growth without compromising margins, and expects to outperform the industry from a bottom-line perspective.

3. NewsRoom

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Are Strong Financial Prospects The Force That Is Driving The Momentum In Intact Financial Corporation's TSE:IFC) Stock?

Dec -03

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TD on Extreme Weather and the Insurance Market

Nov -27

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AM Best Assigns Issue Credit Rating to Intact Financial Corporation’s Preferred Stock

Nov -14

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Intact Financial (TSX:IFC): Is There More Upside to Its Current Valuation?

Nov -13

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Intact Financial Corporation Completes $150 Million Preferred Share Offering

Nov -12

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Intact Financial Corp (IFCZF) Q3 2025 Earnings Call Highlights: Strong Underwriting Performance ...

Nov -05

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Intact Financial Corporation reports Q3-2025 results

Nov -04

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Why Analysts Are Split on Intact Financial as New Developments Shift the Story

Oct -23

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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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A-Score: 7.2/10

Value: 7.5

Growth: 6.9

Quality: 7.9

Yield: 2.0

Momentum: 9.0

Volatility: 9.7

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Manulife

A-Score: 7.0/10

Value: 6.9

Growth: 3.9

Quality: 6.7

Yield: 9.0

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A-Score: 6.7/10

Value: 5.4

Growth: 6.4

Quality: 7.8

Yield: 4.0

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Volatility: 9.0

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Progressive

A-Score: 6.4/10

Value: 5.6

Growth: 8.4

Quality: 7.0

Yield: 4.0

Momentum: 4.5

Volatility: 9.0

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Intact Financial

A-Score: 6.4/10

Value: 4.6

Growth: 6.7

Quality: 7.6

Yield: 4.0

Momentum: 5.5

Volatility: 10.0

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A-Score: 5.8/10

Value: 4.8

Growth: 2.8

Quality: 5.5

Yield: 8.0

Momentum: 6.0

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

274.0$

Current Price

274$

Potential

-0.00%

Expected Cash-Flows