Canada NewsWire
TORONTO, Nov. 9, 2021
(in Canadian dollars except as otherwise noted)
Highlights
TORONTO, Nov. 9, 2021 /CNW/ - (TSX: IFC)
Charles Brindamour, Chief Executive Officer, said:
"The strength of our business was again evident this quarter, with robust operating performance across the platform, despite an elevated level of catastrophes. Our people have worked hard to get customers back on track following many severe weather events. We are making great progress on the integration of RSA, with synergies being realized as expected. The acquisition is already delivering high single-digit accretion to NOIPS since closing on June 1, and we remain on track to generate upper teens accretion within 36 months. With a strong and resilient balance sheet and momentum in all segments, we are increasing dividends to our common shareholders for the sixteenth consecutive year."
Consolidated Highlights1 | ||||||
(in millions of Canadian dollars except as otherwise noted) | Q3-2021 | Q3-2020 | Change | YTD 2021 | YTD 2020 | Change |
Direct premiums written1 | 5,447 | 3,264 | 68% | 12,266 | 9,167 | 35% |
Combined ratio | 91.3% | 87.1% | 4.2 pts | 89.3% | 90.3% | (1.0) pts |
Underwriting income | 426 | 369 | 15% | 1,187 | 812 | 46% |
Net investment income | 191 | 143 | 34% | 486 | 434 | 12% |
Distribution EBITA and Other | 105 | 81 | 30% | 285 | 203 | 40% |
Net operating income | 519 | 411 | 26% | 1,391 | 1,004 | 39% |
Net income | 300 | 334 | (10)% | 1,387 | 704 | 97% |
Per share measures (in dollars) | ||||||
Net operating income per share (NOIPS) | $2.87 | $2.78 | 3% | $8.56 | $6.74 | 27% |
Earnings per share (EPS) | $1.60 | $2.25 | (29)% | $8.46 | $4.65 | 82% |
Return on equity for the last 12 months | ||||||
Operating ROE | 18.3% | 16.9% | 1.4 pts | |||
ROE | 16.5% | 11.5% | 5.0 pts | |||
Book value per share (in dollars) | $79.21 | $56.22 | 41% | |||
Total capital margin2 | 2,693 | 1,871 | 822 | |||
Adjusted debt-to-total capital ratio | 23.9% | 21.2% | 2.7 pts |
__________ |
1 This press release contains non-IFRS financial measures. Refer to Section 23 – Non-IFRS financial measures in the Q3-2021 Management's Discussion and Analysis for further details. DPW change (growth) is presented in constant currency. |
2 Refer to Section 18 – Capital management in the Q3-2021 Management's Discussion and Analysis for further details. |
Common Share Dividend
Industry Outlook
Segment Results
(in millions of Canadian dollars except as otherwise noted) | Q3-2021 | Q3-2020 | Change | YTD 2021 | YTD 2020 | Change |
Direct premiums written | ||||||
Canada | 3,564 | 2,724 | 31% | 8,740 | 7,745 | 13% |
UK&I | 1,264 | n/a | nm | 1,264 | n/a | nm |
U.S. | 619 | 540 | 21% | 1,528 | 1,422 | 16% |
Corporate (RSA for June 2021) | n/a | n/a | nm | 734 | n/a | nm |
Total | 5,447 | 3,264 | 68% | 12,266 | 9,167 | 35% |
Combined ratio | ||||||
Canada | 89.2% | 86.0% | 3.2 pts | 87.6% | 89.4% | (1.8) pts |
UK&I | 93.9% | n/a | nm | 93.9% | n/a | nm |
U.S. | 92.8% | 94.5% | (1.7) pts | 93.0% | 96.0% | (3.0) pts |
Corporate (RSA for June 2021) | n/a | n/a | nm | 90.7% | n/a | nm |
Total | 91.3% | 87.1% | 4.2 pts | 89.3% | 90.3% | (1.0) pts |
Underwriting income | ||||||
Canada | 356 | 347 | 9 | 1,012 | 762 | 250 |
UK&I | 72 | n/a | 72 | 72 | n/a | 72 |
U.S. | 30 | 21 | 9 | 81 | 46 | 35 |
RSA – June 2021 | n/a | n/a | nm | 57 | n/a | 57 |
Group Reinsurance, Corporate and Other | (32) | 1 | (33) | (35) | 4 | (39) |
Total | 426 | 369 | 57 | 1,187 | 812 | 375 |
Insurance Business Performance.
Lines of Business
P&C Canada (includes RSA Canada results)
P&C UK&I
P&C U.S.
Investments
Net Income and ROE
Balance Sheet
RSA Acquisition Update
Preferred Share Dividends
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 Q3-2021 MD&A as well as the Q3-2021 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 Details
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 416-764-8659 or 1-888-664-6392 (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 10, 2021 at 2:00 p.m. ET until midnight on November 17, 2021. To listen to the replay, call 416-764-8677 or 1-888-390-0541 (toll-free in North America), entry code 107779. 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, a leading provider of global specialty insurance, and, with RSA, a leader in the U.K. and Ireland. Our business has grown organically and through acquisitions to over $20 billion of total annual premiums.
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. Intact also provides affinity insurance solutions through the Johnson Affinity Groups.
In the U.S., Intact Insurance Specialty Solutions provides a range of specialty insurance products and services through independent agencies, regional and national brokers, and wholesalers and managing general agencies.
Outside of North America, the Company provides personal, commercial and specialty insurance solutions across the U.K., Ireland, Europe and the Middle East through the RSA brands.
Forward Looking Statements
Certain statements made in this news release are forward-looking statements. These statements include, without limitation, statements relating to the outlook for the property and casualty insurance industry in Canada, the U.S. and the UK, the Company's business outlook, the Company's growth prospects, the impact on the Company of the occurrence of and response to the coronavirus (COVID-19) pandemic and ensuing events, the acquisition of RSA, the sale of Codan Forsikring A/S's Danish business (the "Sale"), and the completion of and timing for completion of the Sale. All such forward-looking statements are made pursuant to the 'safe harbour' provisions of applicable Canadian securities laws.
Forward-looking statements, by their very nature, are subject to inherent risks and uncertainties and are based on several assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements as a result of various factors, including those discussed in the Company's most recently filed Annual Information Form dated March 31, 2021 and those made in our Q3-2021 Management's Discussion and Analysis (including in its "Risk Management" in section 21), our 2020 Annual Management's Discussion and Analysis (sections 28-33), in Notes 10 and 13 of our Consolidated Financial Statements for the year ended December 31, 2020 and the additional risk factors of the Company related to the proposed RSA acquisition as described at pages 24-28 of the Company's Presentation entitled "Building a Leading P&C Insurer - Acquisition of RSA's Canada and UK&I operations," dated November 18, 2020 and the risk factors included in the Company's Business Acquisition Report dated June 16, 2021 and available on SEDAR at www.sedar.com. As a result, we cannot guarantee that any forward-looking statement will materialize and we caution you against relying on any of these forward-looking statements. Except as may be required by Canadian securities laws, we do not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Please read the cautionary note at the beginning of the MD&A.
SOURCE Intact Financial Corporation
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