Intact Financial (IFC) investor relations material

Executive summary

• Operating DPW grew 5% YoY to $7.006B; NOIPS was $3.63 and the combined ratio was 94.0%, including catastrophe losses 4 points above expectations.

• Operating ROE was 15.8%, its 10th consecutive quarter above 15%; excess capital reduced ROE by 2 points.

• Book value per share rose 8% YoY to $111.11.

Financial highlights

• Net operating income attributable to common shareholders was $641M, down 20% YoY; diluted EPS was $3.03, versus $4.73.

• Underwriting income was $368M, down 38% YoY; operating net investment income rose 5% to $422M.

• Distribution income increased 16% YoY to $171M, with contributions from BrokerLink and On Side.

• YTD operating DPW grew 5% to $19.953B; net income was $2.034B, down 15% YoY.

Outlook and guidance

• Long-term objectives remain 10% annual NOIPS growth and annual ROE outperformance of 500 bps over the industry.

• Canadian Personal Auto is expected to continue outperforming industry growth, with a combined ratio below 95%; Personal Property guidance is below 95% even with severe weather, and Commercial targets low-90s or better.

• U.S. combined ratio guidance is low-90s or better; U.K. & Ireland combined ratio is expected to move toward 90%.

• Net investment income is expected to exceed $1.7B in 2026 and $1.8B in 2027; the 2026 consolidated expense ratio is expected at the high end of the 33%-34% range.

• Distribution income is expected to grow 10% annually over time; recurring pre-tax earnings from AI deployment are expected to rise from nearly CAD 250M to CAD 500M in 24 months.