Intact Financial (IFC) investor relations material

Financial performance and ROE outlook

• Sustained above-average ROE, with a five-year average of 16% and consistent outperformance versus industry by 650 basis points, exceeding the 500 basis point target.

• Business mix has shifted, with commercial and specialty lines growing from 30% in 2015 to over 50% today, supporting ROE sustainability.

• Outperformance is driven by pricing and risk selection, claims management and supply chain, and capital management and investment.

• Initiatives in pricing sophistication, such as machine learning models, are being aggressively deployed in commercial and specialty lines.

Claims management and competitive advantages

• Claims strategy centers on internalizing expertise and deep supply chain integration, with nearly all claims in Canada handled by employees.

• Legal defense is largely internalized, with over 600 professionals handling 80% of liability claims.

• Service centers for car repairs and the OnSite acquisition have improved cycle times and customer satisfaction.

• These competitive advantages are considered difficult to replicate due to scale and expertise built over 20 years.

AI, technology, and innovation

• Over 500 AI models are deployed, generating $150 million in recurring benefits, with a target of $500 million by 2030.

• AI benefits are focused two-thirds on pricing and risk, and one-third on efficiency and customer experience.

• Generative AI is being leveraged for efficiency, but the main opportunity is in pricing and customer experience rather than just cost reduction.

• Fourth-generation machine learning models are being expanded from personal lines in Canada to commercial lines in the US and UK.

• AI modules are being developed to automate underwriting and enhance broker interactions.