In This Article:
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Net Operating Income Per Share (NOIPS): $4.93 in Q4 2024, up 23% from last year.
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Combined Ratio: 86.5% in Q4, 4 points better than last year.
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Operating Return on Equity (ROE): 16.5% for 2024.
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Total Capital Margin: $2.9 billion at year-end.
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Catastrophe Losses: $1.5 billion for the year.
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Dividend Increase: 10% increase, marking the 20th consecutive year.
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Personal Auto Premium Growth: 12% in Q4.
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Personal Property Premium Growth: 9% in Q4.
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Commercial Lines Premium Growth: 4% in Q4.
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UK&I Combined Ratio: 92.7% for Q4 and 92.8% for the year.
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US Combined Ratio: 86.1% for Q4 and 87.5% for the year.
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Distribution Income Growth: 13% in Q4 and 12% for the year.
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Book Value Per Share Growth: 2% in Q4 and 13% year over year.
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Adjusted Debt-to-Total Capital: 19.4% at year-end.
Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Intact Financial Corp (IFCZF) reported its best quarter on record with a net operating income per share of $4.93, up 23% from the previous year.
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The company achieved a strong combined ratio of 86.5%, which is 4 points better than last year, indicating strong underlying performance across all lines of business.
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Intact Financial Corp (IFCZF) increased its dividend for the 20th consecutive year, with a 10-year compounded annual growth rate of 10%.
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The company has a robust capital margin of $2.9 billion, positioning it well for future growth opportunities.
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Intact Financial Corp (IFCZF) is advancing its AI capabilities, with over 500 models to optimize underwriting performance and customer experience, contributing to $150 million in run rate underwriting profit.
Negative Points
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The company incurred $1.5 billion in catastrophe losses for the year, reflecting ongoing challenges with severe weather events.
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In the US, premium growth was flat in the quarter due to corrective actions in underperforming segments, indicating potential challenges in maintaining growth.
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The integration of Direct Line in the UK&I created a 4-point drag on growth in Q4, highlighting challenges in integrating acquisitions.
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The Alberta auto insurance market remains challenging due to increased litigation on injury claims, impacting profitability despite recent regulatory changes.
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Intact Financial Corp (IFCZF) increased its retention of catastrophe treaty in Canada from $250 million to $350 million, indicating higher exposure to potential losses.
Q & A Highlights
Q: The market has been able to push through decent price increases in Ontario auto. Should we expect prices to stabilize, and are there any pressures due to upcoming elections? A: Charles Brindamour, CEO, explained that rates increased double digits in the quarter, fueling 12% growth. Inflation has stabilized in the mid-single digits, and rates are expected to normalize to mid- to high-single digits. The industry remains unprofitable, indicating more catch-up is needed. Elections are not seen as a significant risk currently.