Intact Financial (IFC) Scotiabank’s 27th Annual Financials Summit summary

Financial performance and business highlights

• ROE performance expanded to 740 basis points in 2025, exceeding the 500 basis points target, with NOIPS growing at a 12% CAGR over the past decade.

• Canadian segments outperformed in both top-line growth and profitability, with personal auto growing 9% in H1 and a 91.5% combined ratio.

• U.S. specialty lines achieved 4% growth in H1 and maintained a combined ratio below 90% for 12 consecutive quarters.

• U.K. and Ireland saw short-term top-line drag due to integration but expect improvement, targeting a combined ratio toward 90% over 24-36 months.

• Commercial Canada growth driven by SME and mid-market, with profitability prioritized over top-line expansion.

Strategic priorities and transformation

• Accelerating AI deployment in pricing, risk selection, sales, underwriting, and claims to support growth.

• Focused on improving U.K. and Ireland portfolio performance through integration and modernization.

• Actively seeking M&A opportunities, leveraging a strong balance sheet and excess capital.

U.K. and Ireland integration and outlook

• Integration of Direct Line's brokered commercial lines and unification under a single brand are ongoing, causing temporary disruption.

• Technology modernization and sophisticated pricing models are key to improving loss and expense ratios.

• Exiting personal lines in the region, with full integration expected by year-end.