Canada NewsWire
TORONTO, Nov. 3, 2020
Highlights
(TSX: IFC)
(in Canadian dollars except as otherwise noted)
TORONTO, Nov. 3, 2020 /CNW/ -
Charles Brindamour, Chief Executive Officer, said:
"We entered this crisis in a position of strength, which enabled us to provide relief to over 1.2 million customers, while protecting our employees and maintaining our excellent service levels. Our small business customers have been significantly impacted by this crisis. We are continuing to support them with targeted relief and policy adjustments, and will help throughout the economic recovery period. Our resilient operations, coupled with the benefit of our action plans over time and benign weather, led to solid underwriting results this quarter. Our balance sheet remains strong, ready to absorb potential further shocks and capture strategic opportunities."
Consolidated Highlights1 | ||||||
(in millions of Canadian dollars except as otherwise noted) | Q3-2020 | Q3-2019 | Change | YTD 2020 | YTD 2019 | Change |
Direct premiums written1 | 3,264 | 3,012 | 8% | 9,167 | 8,379 | 9% |
Combined ratio | 87.1% | 92.3% | (5.2) pts | 90.3% | 96.9% | (6.6) pts |
Underwriting income | 369 | 198 | 86% | 812 | 236 | nm |
Net investment income | 143 | 146 | (2) % | 434 | 434 | -% |
Distribution EBITA and Other | 81 | 56 | 45% | 203 | 164 | 24% |
Net operating income | 411 | 277 | 48% | 1,004 | 602 | 67% |
Net income | 334 | 187 | 79% | 704 | 514 | 37% |
Per share measures (in dollars) | ||||||
Net operating income per share (NOIPS) | 2.78 | 1.91 | 46% | 6.74 | 4.08 | 65% |
Earnings per share (EPS) | 2.25 | 1.26 | 79% | 4.65 | 3.45 | 35% |
Return on equity for the last 12 months | ||||||
Operating ROE | 16.9% | 12.4% | 4.5 pts | |||
ROE | 11.5% | 10.2% | 1.3 pts | |||
Book value per share (in dollars) | 56.22 | 51.20 | 10% | |||
Total capital margin2 | 1,871 | 1,116 | 755 | |||
Debt-to-total-capital ratio | 21.2% | 19.3% | 1.9 pts |
(1) | This press release contains non-IFRS financial measures. Refer to Section 20 – Non-IFRS financial measures in the Management's Discussion and Analysis for further details. DPW change (growth) is presented in constant currency. |
(2) | Aggregate of capital in excess of company action levels in regulated entities (165% MCT effective April 1, 2020, previously 170% MCT, 200% RBC) plus available cash in unregulated entities. Refer to Section 14 – Capital management in the Management's Discussion and Analysis for further details. |
Common Share Dividend
Industry Outlook
Insurance Business Performance
(in millions of Canadian dollars except as otherwise noted) | Q3-2020 | Q3-2019 | Change | YTD 2020 | YTD 2019 | Change |
Direct premiums written1 | ||||||
Canada | 2,724 | 2,491 | 9% | 7,745 | 7,071 | 10% |
U.S. | 540 | 521 | 3% | 1,422 | 1,308 | 7% |
3,264 | 3,012 | 8% | 9,167 | 8,379 | 9% | |
Combined ratio | ||||||
Canada | 86.0% | 91.8% | (5.8) pts | 89.4% | 97.2% | (7.8) pts |
U.S. | 94.5% | 95.9% | (1.4) pts | 96.0% | 94.9% | 1.1 pts |
87.1% | 92.3% | (5.2) pts | 90.3% | 96.9% | (6.6) pts | |
Underwriting income | ||||||
Canada | 347 | 183 | 90% | 762 | 179 | nm |
U.S. | 21 | 14 | 50% | 46 | 53 | (13)% |
Corporate & other | 1 | 1 | -% | 4 | 4 | -% |
369 | 198 | 86% | 812 | 236 | nm | |
1 DPW change (growth) is presented in constant currency. Refer to Section 6 –U.S. in the Management's Discussion and Analysis for further details. In the U.S., DPW change (growth) as reported was 4% for the quarter and 9% year-to-date. |
Lines of Business
P&C Canada
P&C U.S.
Investments
Net Income and ROE
Balance Sheet
Preferred Share Dividends
M&A Update
Analysts' Estimates
Management's Discussion and Analysis (MD&A) and Consolidated Financial Statements
This Press Release, which was approved by the Company's Board of Directors on the Audit Committee's recommendation, should be read in conjunction with the Q3-2020 MD&A as well as the Q3-2020 Consolidated Financial Statements, which are available on the Company's website at www.intactfc.com and later today on SEDAR at www.sedar.com.
For the definitions of measures and other insurance-related terms used in this Press Release, please refer to the MD&A and to the glossary available in the "Investors" section of the Company's website at www.intactfc.com.
Conference Call
Intact Financial Corporation will host a conference call to review its earnings results tomorrow at 11:00 a.m. ET. To listen to the call via live audio webcast and to view the Company's Financial Statements, MD&A, presentation slides, Supplementary financial information and other information not included in this press release, visit the Company's website at www.intactfc.com and link to "Investors". The conference call is also available by dialing 647 427-7450 or 1 888 231-8191 (toll-free in North America). Please call 10 minutes before the start of the call. A replay of the call will be available on November 4th, 2020 at 2:00 p.m. ET until midnight on November 11th. To listen to the replay, call 416 849-0833 or 1 855 859-2056 (toll-free in North America), passcode 6595826. A transcript of the call will also be made available on Intact Financial Corporation's website.
About Intact Financial Corporation
Intact Financial Corporation (TSX: IFC) is the largest provider of property and casualty (P&C) insurance in Canada and a leading provider of specialty insurance in North America, with over $11 billion in total annual premiums. The Company has approximately 16,000 employees who serve more than five million personal, business and public sector clients through offices in Canada and the U.S.
In Canada, Intact distributes insurance under the Intact Insurance brand through a wide network of brokers, including its wholly-owned subsidiary BrokerLink, and directly to consumers through belairdirect. Frank Cowan Company, a leading MGA, distributes public entity insurance programs including risk and claims management services in Canada.
In the U.S., Intact Insurance Specialty Solutions provides a range of specialty insurance products and services through independent agencies, regional and national brokers, wholesalers and managing general agencies. Products are underwritten by the insurance company subsidiaries of Intact Insurance Group USA, LLC.
Forward Looking Statements
The information linked from this press release may contain forward-looking statements. These statements may include, without limitation, statements relating to claims, catastrophe losses and non-catastrophe losses, the anticipated effect on combined ratio as well as on a per share basis and by line of business, the anticipated effect of applicable and future federal and provincial tax regulations and the impact on the Company of the occurrence of and response to the coronavirus (COVID-19) pandemic and ensuing events. All such forward-looking statements are made pursuant to the 'safe harbour' provisions of applicable Canadian securities laws.
Forward-looking statements are based on estimates and assumptions made by management based on management's experience and perception of historical trends, current conditions and expected future developments, as well as other factors that management believes are appropriate in the circumstances. Many factors could cause the Company's actual results, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements. In the case of estimated claims and losses, due to the preliminary nature of the information available to prepare estimates, future estimates and the actual amount of claims and losses associated with events described above may be materially different from current estimates.
All of the forward-looking statements linked from this press release are qualified by these cautionary statements and those made in our Q3-2020 Management's Discussion and Analysis (including in its "Risk Management" sections (Section 17-18), and our 2019 Annual Management's Discussion and Analysis, in Notes 10 and 13 of our Consolidated Financial Statements for the year ended December 31, 2019 and in our Annual Information Form dated March 30, 2020. These factors are not intended to represent a complete list of the factors that could affect the Company. These factors should, however, be considered carefully. Although the forward-looking statements are based upon what management believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. When relying on forward-looking statements to make decisions, investors should ensure the preceding information is carefully considered. Undue reliance should not be placed on forward-looking statements made in this press release. The Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Intact Financial Corporation
View original content: http://www.newswire.ca/en/releases/archive/November2020/03/c5699.html