(in Canadian dollars except as otherwise noted)
TORONTO, May 7, 2024
/CNW/ - (TSX: IFC)
Highlights
- Operating DPW1,2 increased 6%, with organic growth
of 7%, driven by double-digit growth in personal lines
- Undiscounted combined ratio1 of 91.2%, led by solid
underlying performance across all geographies
- Net operating income per share1 up 19% to
$3.63, largely on the back of premium
growth and strong investment results
- EPS up 79% to $3.68 driven by
investment gains on our equity portfolio as well as the gain on the
sale of our UK direct Personal Lines operations
- Operating ROE1 increased to 14.7% from higher
operating earnings, while BVPS1 grew 9% to $84.76
- Balance sheet is strong with $2.7
billion of total capital margin1 and adjusted
debt-to-total capital ratio1 of 20.5%, largely on
target
Charles Brindamour, Chief
Executive Officer, said:
"We delivered strong results again this quarter with
contribution from all segments, resulting in mid-teens ROE and
solid book value growth. We also continued to make good progress on
the integration of DLG, closed the sale of our UK direct
Personal Lines operations and advanced on all other
aspects of our strategic roadmap. With our strong balance sheet and
business fundamentals, we are on course to grow net operating
income per share by 10% per year over time and outperform the
industry ROE by at least 500 basis points."
Consolidated
Highlights
(in millions of Canadian dollars except as otherwise
noted)
|
Q1-2024
|
Q1-2023
|
Change
|
Operating direct
premiums written1,2
|
5,110
|
4,809
|
6 %
|
Combined ratio
(discounted)1
|
86.8 %
|
87.4 %
|
(0.6) pts
|
Combined ratio
(undiscounted)1
|
91.2 %
|
91.9 %
|
(0.7) pts
|
Underwriting
income1, 3
|
687
|
613
|
12 %
|
Operating net
investment income
|
380
|
295
|
29 %
|
Net unwind of discount
on claims liabilities1,3
|
(227)
|
(226)
|
nm
|
Operating net
investment result1
|
153
|
69
|
122 %
|
Distribution
income1
|
100
|
105
|
(5) %
|
Net operating income
attributable to common shareholders1
|
648
|
537
|
21 %
|
Net
income
|
673
|
377
|
79 %
|
Per share measures
(in dollars)
|
|
|
|
Net operating income
per share (NOIPS)1
|
$3.63
|
$3.06
|
19 %
|
Earnings per share
(EPS)
|
$3.68
|
$2.06
|
79 %
|
Book value per
share1
|
$84.76
|
$77.72
|
9 %
|
Return on equity for
the last 12 months
|
|
|
|
Operating
ROE1
|
14.7 %
|
14.1 %
|
0.6 pts
|
Adjusted ROE1
|
13.5 %
|
18.3 %
|
(4.8) pts
|
ROE1
|
10.6 %
|
15.4 %
|
(4.8) pts
|
Total capital
margin1
|
2,654
|
2,796
|
(142)
|
Adjusted debt-to-total
capital ratio1
|
20.5 %
|
22.4 %
|
(1.9) pts
|
12-Month Industry Outlook
- We expect favourable market conditions to continue, driven by
inflation and catastrophe losses.
- In Canada, both personal
property and auto premium growth could reach a low double-digit
level.
- In commercial and specialty lines across all geographies, we
expect mid to high 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 16 –
Non-GAAP and other financial measures in the Q1-2024 Management's
Discussion and Analysis for further details.
|
2
|
DPW change (growth) is
presented in constant currency.
|
3
|
Underwriting income
includes our underlying performance, catastrophe losses, prior year
development as well as the discount build on claims liabilities.
The discount build is largely offset with the net unwind of
discount on claims liabilities presented within operating net
investment result.
|
Segment Results
(in millions of
Canadian dollars except as otherwise noted)
|
Q1-2024
|
Q1-2023
|
Change
|
Operating direct
premiums written1,2
|
Canada
|
3,252
|
2,996
|
9 %
|
UK&I3
|
1,245
|
1,235
|
(2) %
|
US
|
613
|
578
|
6 %
|
Total
|
5,110
|
4,809
|
6 %
|
Combined
ratio1
|
Canada
|
90.7 %
|
91.7 %
|
(1.0)
pt
|
UK&I3
|
94.6 %
|
94.6 %
|
- pts
|
US
|
88.0 %
|
89.1 %
|
(1.1) pts
|
Combined ratio
(undiscounted)
|
91.2 %
|
91.9 %
|
(0.7) pts
|
Impact of
discounting
|
(4.4) %
|
(4.5) %
|
0.1 pts
|
Combined ratio
(discounted)
|
86.8 %
|
87.4 %
|
(0.6) pts
|
Q1-2024 Consolidated Performance
- Overall operating DPW increased 6%, with organic growth of 7%
(excluding exits and acquisitions) led by double-digit growth in
Canada personal lines and healthy
rate increases across our commercial lines of business.
- Overall combined ratio was solid at 91.2% (undiscounted),
reflecting mild weather and lower catastrophe losses in the
quarter, as well as continued rate actions in favourable market
conditions.
- Operating net investment income of $380
million for the quarter increased 29% year-over-year,
reflecting higher reinvestment yields and increased turnover of our
portfolio over the last 12 months.
- Distribution income decreased by 5% to $100 million, reflecting lower contribution from
On Side due to mild winter weather, as well as lower variable
commissions compared to last year's strong level. We continue to
expect a growth of at least 10% in 2024.
Lines of Business4
P&C Canada
- Personal auto premium growth was strong at 11%,
reflecting high single-digit rate increases and continued unit
growth. The combined ratio of 98.6% reflected a 2-point impact from
mild winter seasonality, 1-point impact from unfavourable industry
pools and another
1-point impact from non-recurring expenses, essentially incentive
compensation related. Underlying performance reflected a 3-point
improvement year-over-year, which was tempered by lower favourable
PYD in the quarter. We continue to expect a seasonally adjusted
sub-95 combined ratio in 2024.
- Personal property premiums grew by 9%, driven by strong
rate increases and unit growth momentum. The combined ratio was
strong at 82.5%, improving by 2 points from the prior year,
reflecting the absence of catastrophe losses in the period, along
with favourable development on prior year losses.
- Commercial lines premiums grew by 5%, reflecting
continued rate discipline, tempered by increased competition in
regular commercial and specialty lines. The combined ratio was
strong at 87.3% for the quarter, reflecting solid underlying
performance, low catastrophe losses and very favorable prior-year
development.
P&C UK&I
- Excluding the impact of the UK Personal Lines exit, operating
DPW growth in constant currency was 29%, mainly due to the brokered
Commercial Lines operations acquired from Direct Line Insurance
Group plc in Q4-2023. The combined ratio of 94.6% included 7 points
of catastrophe losses, approximately 2 points above expectations.
The underlying performance including DLG was otherwise solid at
92.6% for the first quarter.
______________________________
|
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 16 – Non-GAAP and other financial measures in the Q1-2024
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 29% in Q1-2024, and pro-forma
combined ratio was 88.4% for Q1-2023.
|
4
|
Combined ratios within
the Lines of Business are reported on an undiscounted
basis.
|
P&C US
- Operating DPW grew 6% on a constant currency basis, reflecting
healthy rate increases across most lines of business, with a focus
on pricing discipline. The combined ratio was solid at 88.0% for
the quarter, 1 point better than prior year, reflecting a
favourable business mix and continued underwriting discipline.
Net Operating Income, EPS and ROE
- Net operating income attributable to common shareholders of
$648 million increased 21% from last
year, driven by solid underwriting and investment results.
- Strong Earnings Per Share of $3.68, up 79% year-over-year, as the gain on sale
of our UK direct Personal Lines operations and favourable equity
movements largely offset strategic costs associated with the DLG
and RSA acquisitions.
- Operating ROE increased to 14.7% on strong operating
performance across the business, despite an impact of nearly 2.5
points from excess catastrophe losses over the last 12 months.
Adjusted ROE of 13.5% and ROE of 10.6% remained healthy despite
strategic costs from our restructuring and de-risking activities in
the UK&I.
Balance Sheet
- The Company ended the quarter in a strong financial position,
with a total capital margin of $2.7
billion and solid regulatory capital ratios in all
jurisdictions.
- Adjusted debt-to-total capital ratio decreased to 20.5% as at
March 31, 2024, returning close to
our long-term target quicker than anticipated, reflecting strong
capital generation in a benign catastrophe loss quarter, which was
deployed for deleveraging activities.
- IFC's book value per share (BVPS) of $84.76 as at March 31,
2024 increased 9% year-over-year, and was 4% higher than in
Q4-2023, due to strong operating earnings.
Common Share Dividend
- The Board of Directors approved the quarterly dividend of
$1.21 per share on the Company's
outstanding common shares. The dividends are payable on
June 28, 2024, to shareholders of
record on June 14, 2024.
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, 32.50 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 as of June 30, 2024, to
shareholders of record on June 14,
2024.
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 $2.92 and $3.40, respectively.
Management's Discussion and Analysis (MD&A) and Interim
Condensed 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 Q1-2024 MD&A, as well as the Q1-2024
interim condensed 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 interim condensed
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 416-764-8659 or 1-888-664-6392 (toll-free
in North America). Please call 10
minutes before the start of the call. A replay of the call will be
available on May 8, 2024 at
2:00 p.m. ET until midnight on
May 15, 2024. To listen to the
replay, call 416-764-8677 or 1-888-390-0541 (toll-free in
North America), entry code 498474.
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 provider of global specialty
insurance, and, with RSA, a leader in the U.K. and Ireland. Our business has grown organically
and through acquisitions to over
$22 billion of total annual operating
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. Through belairdirect, Intact distributes directly to
consumers. Intact also provides affinity insurance solutions
through affinity groups, travel insurance, as well as exclusive and
tailored offerings through Intact Prestige.
In the U.S., Intact Insurance Specialty Solutions provides a
range of specialty insurance products and services through
independent agencies, regional and national brokers, and
wholesalers and managing general agencies.
In the U.K., Ireland, and
Europe, Intact provides personal,
commercial and specialty insurance solutions through the RSA, 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 the Company's financial reports include measures
related to our consolidated performance, our underwriting
performance and our 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 16 – Non-GAAP and
other financial measures in the Q1-2024 MD&A dated May 7, 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 common shareholders, as reported under
IFRS
|
Q1-2024
|
Q1-2023
|
|
|
|
Net income
attributable to shareholders, as reported under IFRS
|
673
|
377
|
Remove: pre-tax
non-operating results
|
13
|
141
|
Remove: non-operating
tax expense (benefit)
|
(21)
|
35
|
NOI attributable to shareholders
|
665
|
553
|
Remove: preferred share
dividends and other equity distribution
|
(17)
|
(16)
|
NOI attributable to
common shareholders
|
648
|
537
|
Divided by
weighted-average number of common shares (in millions)
|
178.3
|
175.3
|
NOIPS, basic and
diluted (in dollars)
|
3.63
|
3.06
|
NOI attributable to
common shareholders for the last 12 months
|
2,172
|
2,114
|
Adjusted average common
shareholders' equity, excluding AOCI
|
14,785
|
15,039
|
OROE for the last 12
months
|
14.7 %
|
14.1 %
|
Table 2 Reconciliation of underwriting results on a
MD&A basis with the interim condensed consolidated financial
statements
Financial
statements
|
FS
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
Total
|
MD&A
|
MD&A
|
For the quarter
ended March 31, 2024
|
|
|
|
|
|
|
|
|
|
|
|
Insurance
revenue
|
6,511
|
(673)
|
(359)
|
|
|
|
(281)
|
(20)
|
15
|
(1,318)
|
5,193
|
Operating net
underwriting revenue
|
Insurance service
expense
|
(5,358)
|
314
|
420
|
(148)
|
8
|
(49)
|
302
|
20
|
(15)
|
852
|
(4,506)
|
Sum of: Operating net
claims ($2,717 million) and Operating net underwriting expenses
($1,789 million)
|
Expense from
reinsurance contracts
|
(673)
|
673
|
|
|
|
|
|
|
|
673
|
-
|
n/a
|
Income from reinsurance
contracts
|
314
|
(314)
|
|
|
|
|
|
|
|
(314)
|
-
|
n/a
|
Insurance service
result
|
794
|
-
|
61
|
(148)
|
8
|
(49)
|
21
|
-
|
-
|
(107)
|
687
|
Underwriting income
(loss)
|
For the quarter
ended March 31, 2023
|
|
|
|
|
|
|
|
|
|
|
|
Insurance
revenue
|
6,354
|
(847)
|
(80)
|
|
|
|
(541)
|
(59)
|
37
|
(1,490)
|
4,864
|
Operating net
underwriting revenue
|
Insurance service
expense
|
(5,596)
|
733
|
140
|
(86)
|
6
|
(35)
|
565
|
59
|
(37)
|
1,345
|
(4,251)
|
Sum of: Operating net
claims ($2,599 million) and Operating net underwriting expenses
($1,652 million)
|
Expense from
reinsurance contracts
|
(847)
|
847
|
|
|
|
|
|
|
|
847
|
-
|
n/a
|
Income from reinsurance
contracts
|
733
|
(733)
|
|
|
|
|
|
|
|
(733)
|
-
|
n/a
|
Insurance service
result
|
644
|
-
|
60
|
(86)
|
6
|
(35)
|
24
|
-
|
-
|
(31)
|
613
|
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 corporate income (expense))
|
6
|
Adjustment to exclude
Net insurance service results from claims acquired in a business
combination (treated as non-operating)
|
7
|
Adjustment to
reclassify Assumed (ceded) commissions and premium
adjustments
|
8
|
Adjustment to
reclassify Net insurance revenue from retroactive reinsurance
contracts
|
Table 3 Reconciliation of Net unwind of discount on
claims liabilities to Net insurance financial result, as reported
under IFRS
|
|
|
Q1-2024
|
Q1-2023
|
|
|
|
|
|
Net insurance
financial result, as reported under IFRS
|
|
|
(97)
|
(251)
|
Remove: Changes in
discount rates and other financial assumptions
|
|
|
(81)
|
92
|
Remove: Net foreign
currency gains (losses)
|
|
|
(30)
|
(44)
|
Remove: Net insurance
financial result from claims acquired in a business
combination
|
|
|
(19)
|
(23)
|
Net unwind of
discount on claims liabilities
|
|
|
(227)
|
(226)
|
Table 4 Reconciliation of ROE to Net income
attributable to shareholders, as reported under IFRS
|
Q1-2024
|
Q1-2023
|
Net income
attributable to shareholders
|
673
|
377
|
Remove: preferred share
dividends and other equity distribution
|
(17)
|
(16)
|
Net income
attributable to common shareholders
|
656
|
361
|
Divided by
weighted-average number of common shares (in
millions)
|
178.3
|
175.3
|
EPS, basic and
diluted (in dollars)
|
3.68
|
2.06
|
Net income
attributable to common shareholders for the last 12
months
|
1,527
|
2,269
|
Adjusted average common
shareholders' equity
|
14,397
|
14,762
|
ROE for the last 12
months
|
10.6 %
|
15.4 %
|
Table 5 Reconciliation of consolidated results on a
MD&A basis with the interim condensed consolidated financial
statements
|
MD&A
captions
|
Pre-tax
|
|
|
As presented in the
Financial statements
|
Distribution
income
|
Total
finance
costs
|
Other
operating
income
(expense)
|
Operating
net investment
result
|
Total
income
taxes
|
Non-
operating
results
|
Underwriting
income
(loss)
|
Total F/S
caption
|
For the quarter
ended March 31, 2024
|
Insurance service
result
|
43
|
|
6
|
|
|
(90)
|
835
|
794
|
Net investment
income
|
|
|
|
380
|
|
|
|
380
|
Net gains (losses) on
investment portfolio
|
|
|
|
|
|
(40)
|
|
(40)
|
Net insurance
financial result
|
|
|
|
(227)
|
|
130
|
|
(97)
|
Share of profits from
investments in associates and joint ventures
|
38
|
(5)
|
2
|
|
(7)
|
(6)
|
|
22
|
Other net gains
(losses)
|
|
|
|
|
|
180
|
|
180
|
Other income and
expense
|
19
|
|
(36)
|
|
|
(74)
|
(148)
|
(239)
|
Other finance
costs
|
|
(57)
|
|
|
|
|
|
(57)
|
Acquisition,
integration and restructuring costs
|
|
|
|
|
|
(113)
|
|
(113)
|
Income tax benefit
(expense)
|
|
|
|
|
(157)
|
|
|
(157)
|
|
|
|
|
|
|
|
|
|
Total, as reported
in MD&A
|
100
|
(62)
|
(28)
|
153
|
(164)
|
(13)
|
687
|
|
For the quarter
ended March 31, 2023
|
Insurance service
result
|
36
|
|
(1)
|
|
|
(90)
|
699
|
644
|
Net investment
income
|
|
|
|
295
|
|
|
|
295
|
Net gains (losses) on
investment portfolio
|
|
|
|
|
|
149
|
|
149
|
Net insurance
financial result
|
|
|
|
(226)
|
|
(25)
|
|
(251)
|
Share of profits from
investments in associates and joint ventures
|
47
|
(4)
|
1
|
|
(10)
|
(4)
|
|
30
|
Other net gains
(losses)
|
|
|
|
|
|
17
|
|
17
|
Other income and
expense
|
22
|
|
(31)
|
|
|
(52)
|
(86)
|
(147)
|
Other finance
costs
|
|
(50)
|
|
|
|
|
|
(50)
|
Acquisition,
integration and restructuring costs
|
|
|
|
|
|
(136)
|
|
(136)
|
Income tax benefit
(expense)
|
|
|
|
|
(174)
|
|
|
(174)
|
|
|
|
|
|
|
|
|
|
Total, as reported
in MD&A
|
105
|
(54)
|
(31)
|
69
|
(184)
|
(141)
|
613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Table 6 Reconciliation of AEPS and AROE to Net income
attributable to shareholders, as reported under IFRS
|
Q1-2024
|
Q1-2023
|
Net income
attributable to shareholders, as reported under
IFRS
|
673
|
377
|
Remove
acquisition-related items, after tax
|
|
|
Amortization of
acquired intangible assets
|
57
|
49
|
Acquisition and
integration costs
|
55
|
45
|
Tax adjustments on
acquisition-related items
|
-
|
1
|
Net result from claims
acquired in a business combination
|
2
|
1
|
Adjusted net income
attributable to shareholders
|
787
|
473
|
Remove: preferred
share dividends and other equity distribution
|
(17)
|
(16)
|
Adjusted net income
attributable to common shareholders
|
770
|
457
|
Divided by
weighted-average number of common shares (in millions)
|
178.3
|
175.3
|
AEPS, basic and
diluted (in dollars)
|
4.31
|
2.61
|
Adjusted net income
attributable to common shareholders for the last 12
months
|
1,950
|
2,697
|
Adjusted
average common shareholders'
equity
|
14,397
|
14,762
|
AROE for the last
12 months
|
13.5 %
|
18.3 %
|
Table 7 Calculation of BVPS and BVPS, excluding
AOCI
As at March
31,
|
2024
|
2023
|
|
|
|
Equity attributable to
shareholders, as reported under
IFRS
|
16,740
|
15,241
|
Remove:
Preferred shares and other equity, as
reported under IFRS
|
(1,619)
|
(1,619)
|
|
|
|
Common shareholders'
equity
|
15,121
|
13,622
|
Remove:
AOCI, as
reported under IFRS
|
292
|
484
|
|
|
|
Common shareholders'
equity (excluding AOCI)
|
15,413
|
14,106
|
|
|
|
Number of common shares
outstanding at the same date (in
millions)
|
178.4
|
175.3
|
BVPS
|
84.76
|
77.72
|
BVPS (excluding
AOCI)
|
86.39
|
80.49
|
Table 8 Adjusted average common shareholders' equity
and Adjusted average common shareholders' equity, excluding
AOCI
As at March
31,
|
2024
|
2023
|
|
|
|
Ending common
shareholders' equity
|
15,121
|
13,622
|
Remove: significant
capital transaction in the last 12 months
|
(557)
|
1,195
|
Ending common
shareholders' equity, excluding significant capital
transaction
|
14,564
|
14,817
|
Beginning common
shareholders' equity
|
13,622
|
14,923
|
Average common
shareholders' equity, excluding significant capital transaction
|
14,093
|
14,870
|
Weighted impact of
significant capital transactions1
|
304
|
(108)
|
Adjusted average common shareholders'
equity
|
14,397
|
14,762
|
|
|
|
Ending
common shareholders' equity,
excluding AOCI
|
15,413
|
14,106
|
Remove: significant
capital transaction in the last 12 months
|
(557)
|
1,195
|
Ending common
shareholders' equity, excluding AOCI and significant capital
transaction
|
14,856
|
15,301
|
Beginning common
shareholders' equity, excluding AOCI
|
14,106
|
14,993
|
Average common
shareholders' equity, excluding AOCI and significant capital
transaction
|
14,481
|
15,147
|
Weighted impact of
significant capital transactions1
|
304
|
(108)
|
Adjusted average common shareholders'
equity, excluding AOCI
|
14,785
|
15,039
|
1
March 31, 2023 figure represents the net weighted impact of the
February 27, 2023 significant capital transaction. March 31, 2024
figure represents the weighted impact of the September 13, 2023
significant capital transaction.
|
Table 9 Reconciliation of Debt outstanding (excluding
hybrid debt) and Total capital to Debt outstanding, Equity
attributable to shareholders and Equity attributable to NCI, as
reported under IFRS
As at
|
March 31,
2024
|
Dec. 31,
2023
|
|
|
|
Debt outstanding, as
reported under IFRS
|
4,714
|
5,081
|
Remove: hybrid
subordinated notes
|
(247)
|
(247)
|
|
|
|
Debt outstanding
(excluding hybrid debt)
|
4,467
|
4,834
|
|
|
|
Debt outstanding, as
reported under IFRS
|
4,714
|
5,081
|
Equity attributable to
shareholders, as reported under IFRS
|
16,740
|
16,190
|
Preferred shares from
Equity attributable to non-controlling interests
|
285
|
285
|
Adjusted total
capital
|
21,739
|
21,556
|
|
|
|
Debt outstanding
(excluding hybrid debt)
|
4,467
|
4,834
|
Adjusted total
capital
|
21,739
|
21,556
|
Adjusted
debt-to-total capital ratio
|
20.5 %
|
22.4 %
|
|
|
|
Debt outstanding, as
reported under IFRS
|
4,714
|
5,081
|
Preferred shares
and other equity, as reported under IFRS
|
1,619
|
1,619
|
Preferred shares from
Equity attributable to non-controlling interests
|
285
|
285
|
Debt outstanding and
preferred shares (including NCI)
|
6,618
|
6,985
|
Adjusted total
capital
|
21,739
|
21,556
|
Total leverage
ratio
|
30.4 %
|
32.4 %
|
Adjusted
debt-to-total capital
ratio
|
20.5 %
|
22.4 %
|
Preferred shares and
hybrids
|
9.9 %
|
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 UK, the Company's business outlook, the Company's
growth prospects, the Direct Line Insurance Group plc's brokered
Commercial Lines operations acquisition and the exit of Royal &
Sun Alliance Insurance Limited ("RSA") from the UK personal lines
market, including the sale of our UK direct personal lines
operations to Admiral Group plc. 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 13,
2024 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
Q1-2024 MD&A.
SOURCE Intact Financial Corporation