(in Canadian dollars except as otherwise noted)
TORONTO, Feb. 11,
2025 /CNW/ - (TSX: IFC)
Highlights
- Operating DPW1,2 grew 5%, led by continued momentum
in Personal lines
- Combined ratio1 was strong at 86.5%, mainly due to
solid underlying results across all geographies and lines of
business
- Net operating income per share1 rose 23% to
$4.93, with robust underwriting
results, as well as investment and distribution income increasing
by 6% and 13%, respectively
- BVPS1 up 13% from last year to $92.67, reflecting EPS of $12.36 for 2024 and the overall strength of our
platform
- Solid operating ROE1 at 16.5% (ROE1 of
14.2%) and a strong balance sheet with $2.9
billion of total capital margin1
- Quarterly dividend increased by $0.12 to $1.33 per
common share, representing a 10-year compounded annual growth rate
of 10%
Charles Brindamour, Chief Executive Officer,
said:
"We ended the year with another quarter of very strong
results across all geographies and a 16.5% operating ROE in 2024.
The $1.5 billion of catastrophe
losses incurred this past year from numerous natural disasters
further demonstrated the resilience of our platform, as well as our
purpose to help people, businesses and society be
resilient in bad times. At the same time, we continue to build on
our competitive advantages and execute on our growth
strategy. Against this backdrop and with the strength of our
balance sheet, we are well positioned to deliver a NOIPS growth of
10% annually over time and exceed the industry ROE by 500 basis
points. We are also pleased to increase dividends to common
shareholders for the 20th consecutive year."
|
Consolidated
Highlights
(in millions of Canadian dollars except as otherwise
noted)
|
Q4-2024
|
Q4-2023
|
Change
|
2024
|
2023
|
Change
|
|
|
Operating direct
premiums
written1,2
|
5,755
|
5,410
|
5 %
|
23,727
|
22,370
|
5 %
|
|
|
Combined
ratio1,3
|
86.5 %
|
90.1 %
|
(3.6) pts
|
92.2 %
|
94.2 %
|
(2.0) pts
|
|
|
Underwriting income
(loss)1,3
|
764
|
517
|
48 %
|
1,689
|
1,183
|
43 %
|
|
|
Operating net
investment income
|
398
|
376
|
6 %
|
1,559
|
1,346
|
16 %
|
|
|
Distribution
income1
|
123
|
109
|
13 %
|
524
|
467
|
12 %
|
|
|
Net operating income
attributable to common shareholders1
|
881
|
713
|
24 %
|
2,576
|
2,014
|
28 %
|
|
|
Net
income
|
667
|
531
|
26 %
|
2,310
|
1,331
|
74 %
|
|
|
Per share measures
(in dollars)
|
|
|
|
|
|
|
|
|
Net operating income
per share (NOIPS)1,4
|
$4.93
|
$4.00
|
23 %
|
$14.43
|
$11.43
|
26 %
|
|
|
Earnings per share
(EPS) – diluted4
|
$3.58
|
$2.78
|
29 %
|
$12.36
|
$6.99
|
77 %
|
|
|
Book value per
share1
|
$92.67
|
$81.71
|
13 %
|
|
|
|
|
|
Return on equity for
the last 12 months
|
|
|
|
|
|
|
|
|
Operating
ROE1
|
16.5 %
|
13.9 %
|
2.6 pts
|
|
|
|
|
|
Adjusted
ROE1
|
16.8 %
|
11.7 %
|
5.1 pts
|
|
|
|
|
|
ROE1
|
14.2 %
|
8.8 %
|
5.4 pts
|
|
|
|
|
|
Total capital
margin1
|
2,890
|
2,671
|
219
|
|
|
|
|
|
Adjusted debt-to-total
capital ratio1
|
19.4 %
|
22.4 %
|
(3.0) pts
|
|
|
|
|
12-Month Industry Outlook
- We expect the current insurance market conditions to persist,
in light of elevated catastrophe losses this past year:
- In both Personal auto and property, we expect low double-digit
premium growth; and
- In Commercial and Specialty lines across all geographies, we
expect mid-single-digit premium growth.
|
__________________
|
|
1 This release
contains Non-GAAP financial measures, Non-GAAP ratios and other
financial measures (each as defined in National Instrument 52-112
"Non-GAAP and Other Financial Measures Disclosure"). Refer to
Section 29 – Non-GAAP and other financial measures in the Q4-2024
Management's Discussion and Analysis for further
details.
|
|
2 DPW
change (growth) is presented in constant currency.
|
|
3 Presented on
an undiscounted basis Underwriting income comparative figures have
been reclassified accordingly.
|
|
4 Per
share metric is calculated based on the weighted-average diluted
number of common shares.
|
Segment Results
|
(in millions of
Canadian dollars except as otherwise noted)
|
Q4-2024
|
Q4-2023
|
Change
|
2024
|
2023
|
Change
|
|
Operating direct
premiums written1,2
|
|
Canada
|
3,984
|
3,682
|
8 %
|
16,060
|
14,891
|
8 %
|
|
UK&I3
|
1,140
|
1,112
|
(3) %
|
4,775
|
4,706
|
(2) %
|
|
US
|
631
|
616
|
- %
|
2,892
|
2,773
|
3 %
|
|
Total
|
5,755
|
5,410
|
5 %
|
23,727
|
22,370
|
5 %
|
|
Combined
ratio1
|
|
Canada
|
84.9 %
|
86.7 %
|
(1.8) pts
|
92.7 %
|
94.5 %
|
(1.8) pts
|
|
UK&I3
|
92.7 %
|
104.6 %
|
(11.9) pts
|
92.8 %
|
96.4 %
|
(3.6) pts
|
|
US
|
86.1 %
|
86.4 %
|
(0.3) pts
|
87.5 %
|
88.7 %
|
(1.2) pts
|
|
Combined
ratio
|
86.5 %
|
90.1 %
|
(3.6) pts
|
92.2 %
|
94.2 %
|
(2.0) pts
|
Q4-2024 Consolidated Performance
- Overall operating DPW growth was 5%, driven by rates and
continued unit growth in Personal lines. Within Commercial lines,
growth was led by mid-single-digit rates and favourable market
conditions across most lines of business.
- Overall combined ratio was strong at 86.5%, improving 3.6
points from last year, reflecting the benefit of our profitability
actions, including higher earned premiums, and milder weather.
- Operating net investment income increased by 6% to $398 million, mainly due to higher book
yields.
- Distribution income increased by 13% from last year to
$123 million, driven by solid organic
growth, contributions from our M&A activities, as well as
higher variable commissions.
Lines of Business
P&C Canada
- Personal auto operating DPW increased by 12%, reflecting rate
actions as well as unit growth of 3%. The combined ratio of 94.2%
for the quarter reflected strong underlying results and was in line
with our seasonally adjusted sub-95 guidance.
- Personal property operating DPW grew by 9%, primarily due to
rates in hard market conditions. The combined ratio was very strong
at 77.1% for the quarter, reflecting robust underlying performance
and low catastrophe losses.
- Commercial lines operating DPW grew by 4%, driven by
mid-single-digit rates other than in large accounts where we
continue to see increased competition. The combined ratio stood at
78.8% for the quarter, 6 points better than last year, driven by
continued underwriting discipline coupled with muted CAT
losses.
P&C UK2
- Operating DPW decreased 3%, reflecting profitability actions
taken within the DLG portfolio. Otherwise, overall conditions
remain conducive to appropriate rate actions. The combined ratio
was strong at 92.7% for the quarter, considering elevated CAT
losses.
P&C US2
- Operating DPW growth was flat, reflecting corrective actions
taken in certain lines of business. Excluding these, growth was 4%.
The combined ratio was strong at 86.1% for the quarter, reflecting
continued underwriting discipline.
|
____________________
|
|
1 This
release contains Non-GAAP financial measures, Non-GAAP ratios and
other financial measures (each as defined in National Instrument
52-112 "Non-GAAP and Other Financial Measures Disclosure"). Refer
to Section 29 – Non-GAAP and other financial measures in the
Q4-2024 Management's Discussion and Analysis for further
details.
|
|
2 DPW change
(growth) is presented in constant currency.
|
|
3 The
comparative period results presented in the table are on a reported
basis. Following the exit of the UK Personal lines operations in
2023, performance of this segment is now analyzed on a pro-forma
basis (which excludes UK Personal lines results) for comparability.
Pro-forma growth in constant currency was 23% in 2024. Pro-forma
combined ratio was 94.3% for 2023.
|
Net Operating Income, EPS and ROE
- Net operating income attributable to common shareholders of
$881 million increased 24%, driven by
a robust underwriting performance, further bolstered by strong
growth in distribution and investment results.
- Earnings per share increased 29% to $3.58 in the quarter, aligned with increased
operating income. EPS also benefitted from fewer exited lines,
restructuring and integration costs year-over-year.
- Operating ROE of 16.5%, despite 3 points of catastrophe losses
above expectations over the past 12 months, driven by a robust
performance across all lines of business and geographies. Adjusted
ROE of 16.8% and ROE of 14.2% were strong, with an increase of 5
points from last year, primarily due to higher operating earnings
and other gains.
Balance Sheet
- The Company ended the quarter in a strong financial position
with a total capital margin of $2.9
billion and solid regulatory capital ratios in all
jurisdictions.
- Adjusted debt-to-total capital ratio stood at 19.4% as at
December 31, 2024, an improvement vs.
Q3-2024, as strong capital generation in the quarter allowed for
the repayment of short-term debt.
- IFC's book value per share (BVPS) of $92.67 as at December 31,
2024, increasing 13% year-over-year, driven by strong
earnings over the last twelve months, as well as gains related to
favourable market movements in the period.
Common Share Dividend
- The Board of Directors approved the quarterly dividend of
$1.33 per share on the Company's
outstanding common shares. The common share dividends are payable
on March 31, 2025, to shareholders of
record on March 14, 2025. This
represents a $0.12 increase and marks
the 20th consecutive annual increase in our common share
dividend since our IPO in 2004.
Preferred Share Dividends
- The Board of Directors also approved a quarterly dividend of
30.25625 cents per share on the
Company's Class A Series 1 preferred shares, 21.60625 cents per share on the Class A Series 3
preferred shares, 32.5 cents per
share on the Class A Series 5 preferred shares, 33.125 cents per share on the Class A Series 6
preferred shares, 37.575 cents per
share on the Class A Series 7 preferred shares, 33.75 cents per share on the Class A Series 9
preferred shares, and 32.8125 cents
per share on the Class A Series 11 preferred shares. The dividends
are payable on March 31, 2025, to
shareholders of record on March 14,
2025.
Normal Course Issuer Bid
- As at December 31, 2024, the
Company had repurchased and cancelled 110,921 common shares at an
average price of $220, under its
normal course issued bid ("NCIB") program. The Board has
authorized, subject to TSX approval, the renewal of the NCIB to
repurchase for cancellation up to 3% of the Company's issued and
outstanding common shares over the subsequent 12-month period,
commencing February 17, 2025.
Analysts' Estimates
- The average estimate of earnings per share and net operating
income per share for the quarter among the analysts who follow the
Company was $3.84 and $4.31, respectively.
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 Q4-2024 MD&A, as well as the Q4-2024
Consolidated financial statements, which are available on the
Company's website at www.intactfc.com and later today on SEDAR+ at
www.sedarplus.ca.
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 Consolidated 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
416-945-7677 or 1-888-699-1199 (toll-free in North America). Please call 10 minutes before
the start of the call. A replay of the call will be available on
February 12, 2025 at 1:00 p.m. ET until 11:59 p.m. ET on February 19, 2025. To listen to the replay, call
289-819-1450 or 1-888-660-6345 (toll-free in North America), entry code 09807. 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 Specialty lines insurer with
international expertise and a leader in Commercial lines in the UK
and Ireland. The business has
grown organically and through acquisitions to almost $24 billion of total annual operating direct
premiums written (DPW).
In Canada, Intact distributes
insurance under the Intact Insurance brand through agencies and a
wide network of brokers, including its wholly- owned subsidiary
BrokerLink. Intact also distributes directly to consumers through
the belairdirect brand and affinity partnerships. Additionally,
Intact provides exclusive and tailored offerings to high-net-worth
customers through Intact Prestige.
In the US, 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.
Across the UK, Ireland, and
Europe, Intact provides Personal,
Commercial and/or Specialty insurance solutions through the RSA,
123.ie, NIG and FarmWeb brands.
Non-GAAP and other financial measures
Non-GAAP financial measures and Non-GAAP ratios (which are
calculated using Non-GAAP financial measures) do not have
standardized meanings prescribed by IFRS (or GAAP) and may not be
comparable to similar measures used by other companies in our
industry. Non-GAAP and other financial measures are used by
management and financial analysts to assess our performance.
Further, they provide users with an enhanced understanding of our
financial results and related trends, and increase transparency and
clarity into the core results of the business.
Non-GAAP financial measures and Non-GAAP ratios used in this
Press Release and other Company's financial reports include
measures related to our consolidated performance, underwriting
performance and financial strength.
For more information about these supplementary financial
measures, Non-GAAP financial measures, and Non-GAAP ratios,
including definitions and explanations of how these measures
provide useful information, refer to Section 29 – Non-GAAP and
other financial measures in the Q4-2024 MD&A dated December 31, 2024, which is available on our
website at www.intactfc.com and on SEDAR+ at
www.sedarplus.ca.
Table 1 Reconciliation of NOI, NOIPS and OROE to Net
income attributable to shareholders
|
Q4-2024
|
Q4-2023
|
2024
|
2023
|
|
|
|
|
|
|
Net income
attributable to shareholders, as reported under IFRS
|
667
|
524
|
2,297
|
1,316
|
|
Remove: pre-tax
non-operating results
|
330
|
152
|
447
|
765
|
|
Remove: non-operating
tax expense (benefit)
|
(88)
|
65
|
(78)
|
17
|
|
NOI
attributable to shareholders
|
909
|
741
|
2,666
|
2,098
|
|
Remove: preferred share
dividends and other equity distribution
|
(28)
|
(28)
|
(90)
|
(84)
|
|
NOI attributable to
common shareholders
|
881
|
713
|
2,576
|
2,014
|
|
Divided by
weighted-average diluted number of common shares (in
millions)
|
178.6
|
178.3
|
178.6
|
176.2
|
|
NOIPS (in
dollars)
|
4.93
|
4.00
|
14.43
|
11.43
|
|
NOI attributable to
common shareholders for the last 12 months
|
2,576
|
2,014
|
|
|
|
Adjusted average common
shareholders' equity, excluding AOCI
|
15,619
|
14,518
|
|
|
|
OROE for the last 12
months
|
16.5 %
|
13.9 %
|
|
|
Table 2 Reconciliation of underwriting results on a
MD&A basis with the Consolidated financial statements
(quarterly)
|
Financial
statements
|
F/S
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
Total
|
MD&A
|
MD&A
|
|
Quarter ended
December 31, 2024
|
|
|
Insurance
revenue
|
6,767
|
(642)
|
(326)
|
|
|
|
|
(104)
|
(38)
|
2
|
(1,108)
|
5,659
|
Operating net
underwriting revenue
|
|
Insurance service
expense
|
(5,055)
|
133
|
338
|
(161)
|
8
|
(61)
|
(230)
|
97
|
38
|
(2)
|
160
|
(4,895)
|
Sum of: Operating net
claims
($2,994 million) and Operating net underwriting expenses ($1,901
million)
|
|
Expense from
reinsurance contracts
|
(642)
|
642
|
|
|
|
|
|
|
|
|
642
|
-
|
n/a
|
|
Income from reinsurance
contracts
|
133
|
(133)
|
|
|
|
|
|
|
|
|
(133)
|
-
|
n/a
|
|
Insurance service
result
|
1,203
|
-
|
12
|
(161)
|
8
|
(61)
|
(230)
|
(7)
|
-
|
-
|
(439)
|
764
|
Underwriting income
(loss)
|
|
Quarter ended
December 31, 2023
|
|
|
Insurance
revenue
|
6,525
|
(586)
|
(346)
|
|
|
|
|
(311)
|
(63)
|
40
|
(1,266)
|
5,259
|
Operating net
underwriting revenue
|
|
Insurance service
expense
|
(5,540)
|
388
|
504
|
(122)
|
5
|
(40)
|
(270)
|
310
|
63
|
(40)
|
798
|
(4,742)
|
Sum of: Operating net
claims
($3,027 million) and Operating net underwriting expenses
($1,715 million)
|
|
Expense from
reinsurance contracts
|
(586)
|
586
|
|
|
|
|
|
|
|
|
586
|
-
|
n/a
|
|
Income from reinsurance
contracts
|
388
|
(388)
|
|
|
|
|
|
|
|
|
(388)
|
-
|
n/a
|
|
Insurance service
result
|
787
|
-
|
158
|
(122)
|
5
|
(40)
|
(270)
|
(1)
|
-
|
-
|
(270)
|
517
|
Underwriting income
(loss)
|
Reconciling items in the table above:
|
1
|
Adjustment to present
results net of reinsurance
|
|
2
|
Adjustment to exclude
net underwriting revenue, net claims, net underwriting expenses
from exited lines (treated as non-operating)
|
|
3
|
Adjustment to include
indirect underwriting expenses (from Other income and expense under
IFRS)
|
|
4
|
Adjustment to exclude
the non-operating pension expense
|
|
5
|
Adjustment to
reclassify intercompany commissions (to Distribution income &
Other operating income (expense))
|
|
6
|
Adjustment to exclude
discount build on claims liabilities (treated as
non-operating)
|
|
7
|
Adjustment to exclude
Net insurance service results from claims acquired in a business
combination (treated as non-operating)
|
|
8
|
Adjustment to
reclassify Assumed (ceded) commissions and premium
adjustments
|
|
9
|
Adjustment to
reclassify Net insurance revenue from retroactive reinsurance
contracts
|
Table 3 Reconciliation of underwriting results on a
MD&A basis with the Consolidated financial statements (for the
year)
|
Financial
statements
|
F/S
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
Total
|
MD&A
|
MD&A
|
|
Twelve-month period
ended December 31, 2024
|
|
|
Insurance
revenue
|
26,523
|
(2,579)
|
(1,395)
|
|
|
|
|
(842)
|
(95)
|
46
|
(4,865)
|
21,658
|
Operating net
underwriting revenue
|
|
Insurance service
expense
|
(22,418)
|
1,660
|
1,503
|
(553)
|
32
|
(203)
|
(925)
|
886
|
95
|
(46)
|
2,449
|
(19,969)
|
Sum of: Operating net
claims
($12,685 million) and Operating net underwriting expenses ($7,284
million)
|
|
Expense from
reinsurance contracts
|
(2,579)
|
2,579
|
|
|
|
|
|
|
|
|
2,579
|
-
|
n/a
|
|
Income from reinsurance
contracts
|
1,660
|
(1,660)
|
|
|
|
|
|
|
|
|
(1,660)
|
-
|
n/a
|
|
Insurance service
result
|
3,186
|
-
|
108
|
(553)
|
32
|
(203)
|
(925)
|
44
|
-
|
-
|
(1,497)
|
1,689
|
Underwriting income
(loss)
|
|
Twelve-month period
ended December 31, 2023
|
|
|
Insurance
revenue
|
25,507
|
(3,056)
|
(562)
|
|
|
|
|
(1,418)
|
(244)
|
138
|
(5,142)
|
20,365
|
Operating net
underwriting revenue
|
|
Insurance service
expense
|
(22,584)
|
2,442
|
875
|
(417)
|
22
|
(151)
|
(948)
|
1,473
|
244
|
(138)
|
3,402
|
(19,182)
|
Sum of: Operating net
claims
($12,374 million) and Operating net underwriting expenses ($6,808
million)
|
|
Expense from
reinsurance contracts
|
(3,056)
|
3,056
|
|
|
|
|
|
|
|
|
3,056
|
-
|
n/a
|
|
Income from reinsurance
contracts
|
2,442
|
(2,442)
|
|
|
|
|
|
|
|
|
(2,442)
|
-
|
n/a
|
|
Insurance service
result
|
2,309
|
-
|
313
|
(417)
|
22
|
(151)
|
(948)
|
55
|
-
|
-
|
(1,126)
|
1,183
|
Underwriting income
(loss)
|
Reconciling items in the table above:
|
1
|
Adjustment to present
results net of reinsurance
|
|
2
|
Adjustment to exclude
net underwriting revenue, net claims, net underwriting expenses
from exited lines (treated as non-operating)
|
|
3
|
Adjustment to include
indirect underwriting expenses (from Other income and expense under
IFRS)
|
|
4
|
Adjustment to exclude
the non-operating pension expense
|
|
5
|
Adjustment to
reclassify intercompany commissions (to Distribution income &
Other operating income (expense))
|
|
6
|
Adjustment to exclude
discount build on claims liabilities (treated as
non-operating)
|
|
7
|
Adjustment to exclude
Net insurance service results from claims acquired in a business
combination (treated as non-operating)
|
|
8
|
Adjustment to
reclassify Assumed (ceded) commissions and premium
adjustments
|
|
9
|
Adjustment to
reclassify Net insurance revenue from retroactive reinsurance
contracts
|
Table 4 Reconciliation of ROE to Net income
attributable to shareholders
|
Q4-2024
|
Q4-2023
|
2024
|
2023
|
|
Net income
attributable to shareholders, as reported under
IFRS
|
667
|
524
|
2,297
|
1,316
|
|
Remove: preferred share
dividends and other equity distribution
|
(28)
|
(28)
|
(90)
|
(84)
|
|
Net income
attributable to common shareholders
|
639
|
496
|
2,207
|
1,232
|
|
Divided by
weighted-average basic number of common shares (in
millions)
|
178.4
|
178.3
|
178.3
|
176.2
|
|
EPS, basic (in
dollars)
|
3.58
|
2.78
|
12.37
|
6.99
|
|
Divided by
weighted-average diluted number of common shares1
(in millions)
|
178.6
|
178.3
|
178.6
|
176.2
|
|
EPS, diluted (in
dollars)
|
3.58
|
2.78
|
12.36
|
6.99
|
|
Net income
attributable to common shareholders for the last 12
months
|
2,207
|
1,232
|
|
|
|
Adjusted average common
shareholders' equity
|
15,550
|
14,021
|
|
|
|
ROE for the last 12
months
|
14.2 %
|
8.8 %
|
|
|
|
1 Includes the net effect of the
exercise of stock options. See Note 27 – Earnings per
share to the Consolidated financial statements for more
details.
|
Table 5 Reconciliation of consolidated results on a
MD&A basis with the Consolidated financial statements
(quarterly)
|
MD&A
captions
|
Pre-tax
|
|
|
|
As presented in the
Financial statements
|
Distribution
income
|
Total
finance
costs
|
Other
operating
income
(expense)
|
Operating
net
investment
income
|
Total
income
taxes
|
Non-
operating
results
|
Underwriting
income
(loss)
|
Total F/S
caption
|
|
For the quarter
ended December 31, 2024
|
|
Insurance service
result
|
81
|
-
|
(20)
|
-
|
-
|
217
|
925
|
1,203
|
|
Net investment
income
|
-
|
-
|
-
|
398
|
-
|
-
|
-
|
398
|
|
Net gains (losses) on
investment portfolio
|
-
|
-
|
-
|
-
|
-
|
(177)
|
-
|
(177)
|
|
Net insurance
financial result
|
-
|
-
|
-
|
-
|
-
|
(199)
|
-
|
(199)
|
|
Share of profits from
investments in associates and joint ventures
|
44
|
(4)
|
-
|
-
|
(8)
|
(10)
|
-
|
22
|
|
Other net gains
(losses)
|
-
|
-
|
-
|
-
|
-
|
44
|
-
|
44
|
|
Other income and
expense
|
(2)
|
-
|
(29)
|
-
|
-
|
(78)
|
(161)
|
(270)
|
|
Other finance
costs
|
-
|
(56)
|
-
|
-
|
-
|
-
|
-
|
(56)
|
|
Acquisition,
integration and restructuring costs
|
-
|
-
|
-
|
-
|
-
|
(127)
|
-
|
(127)
|
|
Income tax benefit
(expense)
|
-
|
-
|
-
|
-
|
(171)
|
-
|
-
|
(171)
|
|
|
|
|
|
|
|
|
|
|
Total, as reported
in MD&A
|
123
|
(60)
|
(49)
|
398
|
(179)
|
(330)
|
764
|
|
|
For the quarter
ended December 31, 2023
|
|
Insurance service
result
|
78
|
-
|
(38)
|
-
|
-
|
108
|
639
|
787
|
|
Net investment
income
|
-
|
-
|
-
|
376
|
-
|
-
|
-
|
376
|
|
Net gains (losses) on
investment portfolio
|
-
|
-
|
-
|
-
|
-
|
532
|
-
|
532
|
|
Net insurance
financial result
|
-
|
-
|
-
|
-
|
-
|
(573)
|
-
|
(573)
|
|
Share of profits from
investments in associates and joint ventures
|
38
|
(3)
|
1
|
-
|
(7)
|
(7)
|
-
|
22
|
|
Other net gains
(losses)
|
-
|
-
|
-
|
-
|
-
|
22
|
-
|
22
|
|
Other income and
expense
|
(7)
|
-
|
(8)
|
-
|
-
|
(52)
|
(122)
|
(189)
|
|
Other finance
costs
|
-
|
(59)
|
-
|
-
|
-
|
-
|
-
|
(59)
|
|
Acquisition,
integration and restructuring costs
|
-
|
-
|
-
|
-
|
-
|
(182)
|
-
|
(182)
|
|
Income tax benefit
(expense)
|
-
|
-
|
-
|
-
|
(205)
|
-
|
-
|
(205)
|
|
Total, as reported
in MD&A
|
109
|
(62)
|
(45)
|
376
|
(212)
|
(152)
|
517
|
|
Table 6 Reconciliation of consolidated results on a
MD&A basis with the Consolidated financial statements (for the
year)
|
MD&A
captions
|
Pre-tax
|
|
|
|
As presented in the
Financial statements
|
Distribution
income
|
Total
finance
costs
|
Other
operating
income
(expense)
|
Operating
net
investment
income
|
Total
income
taxes
|
Non-
operating
results
|
Underwriting
income
(loss)
|
Total F/S
caption
|
|
For the twelve-month
period ended December 31, 2024
|
|
Insurance service
result
|
180
|
-
|
23
|
-
|
-
|
741
|
2,242
|
3,186
|
|
Net investment
income
|
-
|
-
|
-
|
1,559
|
-
|
-
|
-
|
1,559
|
|
Net gains (losses) on
investment portfolio
|
-
|
-
|
-
|
-
|
-
|
148
|
-
|
148
|
|
Net insurance
financial result
|
-
|
-
|
-
|
-
|
-
|
(899)
|
-
|
(899)
|
|
Share of profits from
investments in associates and joint ventures
|
165
|
(16)
|
-
|
-
|
(33)
|
(27)
|
-
|
89
|
|
Other net gains
(losses)
|
-
|
-
|
-
|
-
|
-
|
303
|
-
|
303
|
|
Other income and
expense
|
179
|
-
|
(199)
|
-
|
-
|
(306)
|
(553)
|
(879)
|
|
Other finance
costs
|
-
|
(222)
|
-
|
-
|
-
|
-
|
-
|
(222)
|
|
Acquisition,
integration and restructuring costs
|
-
|
-
|
-
|
-
|
-
|
(407)
|
-
|
(407)
|
|
Income tax benefit
(expense)
|
-
|
-
|
-
|
-
|
(568)
|
-
|
-
|
(568)
|
|
Total, as reported
in MD&A
|
524
|
(238)
|
(176)
|
1,559
|
(601)
|
(447)
|
1,689
|
|
|
For the twelve-month
period ended December 31, 2023
|
|
Insurance service
result
|
149
|
-
|
2
|
-
|
-
|
558
|
1,600
|
2,309
|
|
Net investment
income
|
-
|
-
|
-
|
1,346
|
-
|
-
|
-
|
1,346
|
|
Net gains (losses) on
investment portfolio
|
-
|
-
|
-
|
-
|
-
|
249
|
-
|
249
|
|
Net insurance
financial result
|
-
|
-
|
-
|
-
|
-
|
(894)
|
-
|
(894)
|
|
Share of profits from
investments in associates and joint ventures
|
167
|
(13)
|
-
|
-
|
(35)
|
(23)
|
-
|
96
|
|
Other net gains
(losses)
|
-
|
-
|
-
|
-
|
-
|
50
|
-
|
50
|
|
Other income and
expense
|
151
|
-
|
(159)
|
-
|
-
|
(202)
|
(417)
|
(627)
|
|
Other finance
costs
|
-
|
(222)
|
-
|
-
|
-
|
-
|
-
|
(222)
|
|
Acquisition,
integration and restructuring costs
|
-
|
-
|
-
|
-
|
-
|
(503)
|
-
|
(503)
|
|
Income tax benefit
(expense)
|
-
|
-
|
-
|
-
|
(473)
|
-
|
-
|
(473)
|
|
|
|
|
|
|
|
|
|
|
Total, as reported
in MD&A
|
467
|
(235)
|
(157)
|
1,346
|
(508)
|
(765)
|
1,183
|
|
Table 7 Reconciliation of AEPS and AROE to Net income
attributable to shareholders
|
Q4-2024
|
Q4-2023
|
2024
|
2023
|
|
Net income
attributable to shareholders, as reported under
IFRS
|
667
|
524
|
2,297
|
1,316
|
|
Remove
acquisition-related items, after tax
|
|
|
|
|
|
Amortization of
acquired intangible assets
|
62
|
55
|
233
|
204
|
|
Acquisition and
integration costs
|
44
|
66
|
172
|
193
|
|
Tax adjustments on
acquisition-related items
|
1
|
2
|
5
|
6
|
|
Net result from claims
acquired in a business combination
|
1
|
-
|
3
|
2
|
|
Adjusted net income
attributable to shareholders
|
775
|
647
|
2,710
|
1,721
|
|
Remove: preferred
share dividends and other equity distribution
|
(28)
|
(28)
|
(90)
|
(84)
|
|
Adjusted net income
attributable to common shareholders
|
747
|
619
|
2,620
|
1,637
|
|
Divided by
weighted-average diluted number of common shares (in
millions)
|
178.6
|
178.3
|
178.6
|
176.2
|
|
AEPS (in
dollars)
|
4.18
|
3.47
|
14.67
|
9.29
|
|
Adjusted net income
attributable to common shareholders for the last 12
months
|
2,620
|
1,637
|
|
|
|
Adjusted average
common shareholders' equity
|
15,550
|
14,021
|
|
|
|
AROE for the last
12 months
|
16.8 %
|
11.7 %
|
|
|
Table 8 Calculation of BVPS and BVPS (excluding
AOCI)
|
As at December
31,
|
2024
|
2023
|
|
|
|
|
Equity attributable to
shareholders, as reported under IFRS
|
18,148
|
16,190
|
|
Remove: Preferred
shares and other equity, as reported under IFRS
|
(1,619)
|
(1,619)
|
|
|
|
|
Common shareholders'
equity
|
16,529
|
14,571
|
|
Remove: AOCI, as
reported under IFRS
|
(183)
|
321
|
|
|
|
|
Common shareholders'
equity (excluding AOCI)
|
16,346
|
14,892
|
|
|
|
|
Number of common shares
outstanding at the same date (in millions)
|
178.4
|
178.3
|
|
BVPS
|
92.67
|
81.71
|
|
BVPS (excluding
AOCI)
|
91.64
|
83.51
|
Table 9 Adjusted average common shareholders' equity
and Adjusted average common shareholders' equity, excluding
AOCI
|
As at December
31,
|
2024
|
2023
|
|
|
|
|
Ending common
shareholders' equity
|
16,529
|
14,571
|
|
Remove: significant
capital transaction in the last 12 months
|
-
|
638
|
|
Ending common
shareholders' equity, excluding significant capital
transaction
|
16,529
|
15,209
|
|
Beginning common
shareholders' equity
|
14,571
|
14,521
|
|
Impact of the initial
application of IFRS 9
|
n/a
|
(2)
|
|
Beginning common
shareholders' equity, adjusted for the impact of IFRS 9
|
14,571
|
14,519
|
|
Average common
shareholders' equity, excluding significant capital
transaction
|
15,550
|
14,864
|
|
Weighted impact of
significant capital transactions1
|
-
|
(843)
|
|
Adjusted average common shareholders'
equity
|
15,550
|
14,021
|
|
|
|
|
Ending
common shareholders' equity, excluding AOCI
|
16,346
|
14,892
|
|
Remove: significant
capital transaction in the last 12 months
|
-
|
638
|
|
Ending common
shareholders' equity, excluding AOCI and significant capital
transaction
|
16,346
|
15,530
|
|
Beginning common
shareholders' equity, excluding AOCI
|
14,892
|
15,612
|
|
Impact of the initial
application of IFRS 9
|
n/a
|
(420)
|
|
Beginning common
shareholders' equity, excluding AOCI and adjusted for the impact of
IFRS 9
|
14,892
|
15,192
|
|
Average common
shareholders' equity, excluding AOCI and significant capital
transaction
|
15,619
|
15,361
|
|
Weighted impact of
significant capital transactions1
|
-
|
(843)
|
|
Adjusted average common shareholders'
equity, excluding AOCI
|
15,619
|
14,518
|
|
1 December
31, 2023 figure represents the net weighted impact of the September
13, 2023 and February 27, 2023 significant capital
transactions.
|
Table 10 Reconciliation of Total debt
outstanding before hybrid subordinated notes and Total capital to
Debt outstanding, Equity attributable to shareholders and Equity
attributable to NCI
|
As at
|
Dec. 31,
2024
|
Sept. 30,
2024
|
Dec. 31,
2023
|
|
|
|
|
|
Debt outstanding, as
reported under IFRS
|
4,681
|
4,843
|
5,081
|
|
Remove: hybrid
subordinated notes
|
(247)
|
(247)
|
(247)
|
|
Total debt
outstanding before hybrid subordinated notes
|
4,434
|
4,596
|
4,834
|
|
|
|
|
|
Debt outstanding, as
reported under IFRS
|
4,681
|
4,843
|
5,081
|
|
Equity attributable to
shareholders, as reported under IFRS
|
18,148
|
17,780
|
16,190
|
|
Preferred shares from
Equity attributable to non-controlling interests
|
-
|
-
|
285
|
|
Adjusted total
capital
|
22,829
|
22,623
|
21,556
|
|
|
|
|
|
Total debt outstanding
before hybrid subordinated notes
|
4,434
|
4,596
|
4,834
|
|
Adjusted total
capital
|
22,829
|
22,623
|
21,556
|
|
Adjusted
debt-to-total capital ratio
|
19.4 %
|
20.3 %
|
22.4 %
|
|
|
|
|
|
Debt outstanding, as
reported under IFRS
|
4,681
|
4,843
|
5,081
|
|
Preferred shares and
other equity, as reported under IFRS
|
1,619
|
1,619
|
1,619
|
|
Preferred shares from
Equity attributable to non-controlling interests
|
-
|
-
|
285
|
|
Debt outstanding and
preferred shares (including NCI)
|
6,300
|
6,462
|
6,985
|
|
Adjusted total
capital
|
22,829
|
22,623
|
21,556
|
|
Total leverage
ratio
|
27.6 %
|
28.6 %
|
32.4 %
|
|
Adjusted debt-to-total
capital ratio
|
19.4 %
|
20.3 %
|
22.4 %
|
|
Preferred shares and
hybrids
|
8.2 %
|
8.3 %
|
10.0 %
|
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 U.K., the Company's business outlook, the Company's
growth prospects and the integration of Direct Line Insurance Group
plc's brokered Commercial lines operations. 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 February 11,
2025 and available on SEDAR+ at www.sedarplus.ca. 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
Q4-2024 MD&A.
SOURCE Intact Financial Corporation
