(in Canadian dollars except as otherwise noted)
TORONTO, Nov. 5, 2024
/CNW/ - (TSX: IFC)
Highlights
- Organic operating DPW1,2 growth of 6%, excluding
acquisitions and exits, led by continued momentum in Personal
lines
- Combined ratio1 of 103.9% included 22 points of
catastrophe losses, offsetting otherwise strong underlying
performances across all geographies
- Net operating income per share1 was $1.01 (and EPS of $1.06), despite $5.03 of catastrophe losses, with double-digit
growth in investment and distribution income
- Operating ROE1 remained strong at 15.8% over the
last 12 months, up 4 points year-over-year, with BVPS1
of $90.60, up 3% sequentially,
despite the unusually challenging operating environment
- Strong and resilient balance sheet with $2.6 billion of total capital margin1
and an adjusted debt-to-total capital ratio1 of
20.3%
Charles Brindamour, Chief Executive Officer,
said:
"The devastating effects from severe weather events in
the quarter have impacted the lives of tens of thousands of
customers. Our employees were on the ground within the first
hours of these events providing immediate assistance to affected
communities. We are leveraging our competitive advantages, which
include On Side Restoration and Intact Service Centres, to minimize
losses for our customers. In this context, our operations have
shown great financial resiliency, reflected by our strong capital
position and mid-teens operating ROE over the last 12 months. It's
in these challenging moments that we demonstrate our purpose - to
help people, businesses and society prosper in good times and be
resilient in bad."
|
Consolidated
Highlights
(in millions of Canadian dollars except as otherwise
noted)
|
Q3-2024
|
Q3-2023
|
Change
|
YTD-2024
|
YTD-2023
|
Change
|
|
|
Operating direct
premiums
written1,2
|
6,207
|
5,925
|
4 %
|
17,972
|
16,960
|
5 %
|
|
|
Combined
ratio1
|
103.9 %
|
98.3 %
|
5.6 pts
|
94.2 %
|
95.6 %
|
(1.4) pts
|
|
|
Underwriting (loss)
income1
|
(215)
|
88
|
(344) %
|
925
|
666
|
39 %
|
|
|
Operating net
investment income
|
394
|
349
|
13 %
|
1,161
|
970
|
20 %
|
|
|
Distribution
income1
|
132
|
116
|
14 %
|
401
|
358
|
12 %
|
|
|
Net operating income
attributable to common shareholders1
|
182
|
349
|
(48) %
|
1,695
|
1,301
|
30 %
|
|
|
Net
income
|
212
|
163
|
30 %
|
1,643
|
800
|
105 %
|
|
|
Per share measures
(in dollars)
|
|
|
|
|
|
|
|
|
Net operating income
per share (NOIPS)1,3
|
$1.01
|
$1.98
|
(49) %
|
$9.49
|
$7.41
|
28 %
|
|
|
Earnings per share
(EPS) – diluted3
|
$1.06
|
$0.83
|
28 %
|
$8.78
|
$4.19
|
110 %
|
|
|
Book value per
share1
|
$90.60
|
$77.24
|
17 %
|
|
|
|
|
|
Return on equity for
the last 12 months
|
|
|
|
|
|
|
|
|
Operating
ROE1
|
15.8 %
|
12.0 %
|
3.8 pts
|
|
|
|
|
|
Adjusted
ROE1
|
16.7 %
|
10.6 %
|
6.1 pts
|
|
|
|
|
|
ROE1
|
13.8 %
|
7.8 %
|
6.0 pts
|
|
|
|
|
|
Total capital
margin1
|
2,566
|
2,841
|
(275)
|
|
|
|
|
|
Adjusted debt-to-total
capital ratio1
|
20.3 %
|
22.7 %
|
(2.4) pts
|
|
|
|
|
12-Month Industry Outlook
- We expect the current insurance market conditions to persist,
in light of the recent elevated catastrophe losses:
- 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 14 –
Non-GAAP and other financial measures in the Q3-2024 Management's
Discussion and Analysis for further details.
|
|
2
|
DPW change (growth) is
presented in constant currency.
|
|
3
|
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)
|
Q3-2024
|
Q3-2023
|
Change
|
YTD-2024
|
YTD-2023
|
Change
|
|
Operating direct
premiums written1,2
|
|
Canada
|
4,261
|
3,943
|
8 %
|
12,076
|
11,209
|
8 %
|
|
UK&I3
|
1,075
|
1,157
|
(11) %
|
3,635
|
3,594
|
(2) %
|
|
US
|
871
|
825
|
4 %
|
2,261
|
2,157
|
4 %
|
|
Total
|
6,207
|
5,925
|
4 %
|
17,972
|
16,960
|
5 %
|
|
Combined
ratio1
|
|
Canada
|
109.5 %
|
101.8 %
|
7.7
pts
|
95.4 %
|
97.3 %
|
(1.9) pts
|
|
UK&I3
|
91.9 %
|
92.5 %
|
(0.6) pts
|
92.9 %
|
93.7 %
|
(0.8)
pts
|
|
US
|
87.4 %
|
88.5 %
|
(1.1) pts
|
88.0 %
|
89.6 %
|
(1.6) pts
|
|
Combined
ratio
|
103.9 %
|
98.3 %
|
5.6 pts
|
94.2 %
|
95.6 %
|
(1.4) pts
|
Q3-2024 Consolidated Performance
- Overall operating DPW increased 4%, with organic growth of
6%, after excluding the net impact from acquisitions and exits.
This was led by rate increases and unit growth in hard market
conditions across Personal lines. Within Commercial lines, growth
was led by rates in the mid-single digits, with market conditions
varying by line of business and increased competition in large
accounts.
- Overall combined ratio was elevated at 103.9% after incurring
22 points of catastrophe losses (approximately 17 points in excess
of expectations) driven by severe weather events, mainly impacting
our Canadian segment. Our results otherwise reflected robust
underlying performance (excluding catastrophe losses and prior year
development) across all geographies.
- Operating net investment income of $394
million increased 13% year-over-year, mainly due to higher
reinvestment yields captured in 2023.
- Distribution income of $132
million increased 14% from last year, driven by strong
contributions from our M&A activities, along with improved
margins within BrokerLink.
Lines of Business
P&C Canada
- Personal auto operating DPW grew 12%, reflecting rates and
continued unit momentum in hard market conditions. The combined
ratio of 97.6% included 7 points of catastrophe losses, more than 4
points above expectations. Excluding this, performance was strong,
with an underlying improvement of 3 points year-over-year, which
offset lower favourable PYD in the quarter.
- Personal property operating DPW grew by 8%, reflecting
rates and unit growth in hard market conditions. The combined ratio
of 147.5% was elevated after absorbing 72 points of catastrophe
losses in the quarter. This line of business has shown long-term
resiliency with an average combined ratio of 90% over the last 10
years.
- Commercial lines operating DPW grew by 2%, reflecting
mid-single-digit rate increases, offset by the impact of continued
competition in large accounts. The combined ratio remained solid at
94.4%, as elevated catastrophe losses were largely offset by strong
favourable PYD and a very robust underlying performance.
P&C UK&I2
- Excluding the impact of the UK Personal lines exit,
operating DPW growth was 28%, mainly due to the Q4-2023 DLG
brokered Commercial lines acquisition. Organic growth was muted in
the quarter, as mid-single-digit rate actions and solid new
business in Commercial lines were offset by moderating market
conditions, particularly in large accounts in specialty lines. The
combined ratio remained solid at 91.9%, in line with expectations
following the DLG acquisition.
P&C US2
- Operating DPW grew 4%, reflecting mid-single-digit or
better rate actions in most lines of business, offset by the impact
of corrective actions taken in certain lines of business. The
combined ratio was strong at 87.4% for the quarter, 1 point better
than the prior year, 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 14 –
Non-GAAP and other financial measures in the Q3-2024 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 28% in Q3-2024 and 33% in YTD-2024.
Pro-forma combined ratios were 90.4% for Q3-2023 and 89.7% for
YTD-2023.
|
Net Operating Income, EPS and ROE
- Net operating income attributable to common shareholders
remained profitable at $182 million
after absorbing $1,216 million of
catastrophe losses in the quarter. This reflected strong
underwriting fundamentals, coupled with solid growth in
distribution and investment activities.
- Earnings Per Share increased year-over-year to $1.06, despite the challenging environment,
driven by our diversified sources of income and further supported
by gains on our equity securities.
- Operating ROE was resilient at 15.8%, withstanding the negative
impact from catastrophe losses over the past 12 months.
Balance Sheet
- The Company ended the quarter in a strong financial position,
with a robust total capital margin of $2.6
billion despite the heavy catastrophe losses in the quarter.
Regulatory capital ratios remained solid in all jurisdictions.
- Adjusted debt-to-total capital ratio was 20.3% as at
September 30, 2024, up slightly from
last quarter, following the severe weather events in the period
combined with the cancellation of RSA's preferred shares.
- IFC's book value per share (BVPS) of $90.60 as at September 30,
2024 increased 17% year-over-year, and was 3% higher than
Q2-2024, led by solid earnings and market-related gains on our bond
portfolio.
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
December 31, 2024, to shareholders of
record on December 16, 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 December 31, 2024,
to shareholders of record on December 16,
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 a loss of $(0.17) and
$(0.06), 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 Q3-2024 MD&A, as well as the Q3-2024
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 437-900-0527 or 1-888-510-2154
(toll-free in North America).
Please call 10 minutes before the start of the call. A replay of
the call will be available on November 6,
2024 at 1:00 p.m. ET until 11:59 p.m.
ET on November 13, 2024. To
listen to the replay, call 289-819-1450 or 1-888-660-6345
(toll-free in North America),
entry code 05046. 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 UK 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 US, 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 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 14 – Non-GAAP and
other financial measures in the Q3-2024 MD&A dated September 30, 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
|
Q3-2024
|
Q3-2023
|
YTD-2024
|
YTD-2023
|
|
|
|
|
|
|
Net income
attributable to shareholders, as reported under IFRS
|
207
|
163
|
1,630
|
792
|
|
Remove: pre-tax
non-operating results
|
(23)
|
265
|
117
|
613
|
|
Remove: non-operating
tax expense (benefit)
|
15
|
(62)
|
10
|
(48)
|
|
NOI
attributable to shareholders
|
199
|
366
|
1,757
|
1,357
|
|
Remove: preferred share
dividends and other equity distribution
|
(17)
|
(17)
|
(62)
|
(56)
|
|
NOI attributable to
common shareholders
|
182
|
349
|
1,695
|
1,301
|
|
Divided by
weighted-average diluted number of common shares (in
millions)
|
178.6
|
175.9
|
178.6
|
175.5
|
|
NOIPS (in
dollars)
|
1.01
|
1.98
|
9.49
|
7.41
|
|
NOI attributable to
common shareholders for the last 12 months
|
2,408
|
1,791
|
|
|
|
Adjusted average common
shareholders' equity, excluding AOCI
|
15,277
|
14,894
|
|
|
|
OROE for the last 12
months
|
15.8 %
|
12.0 %
|
|
|
Table 2 Reconciliation of underwriting results on a
MD&A basis with the interim condensed consolidated financial
statements (quarterly)
|
Financial
statements
|
F/S
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
Total
|
MD&A
|
MD&A
|
|
Quarter ended
September 30, 2024
|
|
|
Insurance
revenue
|
6,757
|
(645)
|
(354)
|
|
|
|
|
(250)
|
(25)
|
22
|
(1,252)
|
5,505
|
Operating net
underwriting revenue
|
|
Insurance service
expense
|
(6,809)
|
848
|
375
|
(130)
|
8
|
(49)
|
(230)
|
264
|
25
|
(22)
|
1,089
|
(5,720)
|
Sum of: Operating net
claims ($3,934
million) and Operating net underwriting
expenses ($1,786 million)
|
|
Expense from
reinsurance
contracts
|
(645)
|
645
|
|
|
|
|
|
|
|
|
645
|
-
|
n/a
|
|
Income from
reinsurance
contracts
|
848
|
(848)
|
|
|
|
|
|
|
|
|
(848)
|
-
|
n/a
|
|
Insurance service
result
|
151
|
-
|
21
|
(130)
|
8
|
(49)
|
(230)
|
14
|
-
|
-
|
(366)
|
(215)
|
Underwriting income
(loss)
|
|
Quarter ended
September 30, 2023
|
|
|
Insurance
revenue
|
6,385
|
(815)
|
(63)
|
|
|
|
|
(245)
|
(67)
|
31
|
(1,159)
|
5,226
|
Operating net
underwriting revenue
|
|
Insurance service
expense
|
(5,948)
|
780
|
121
|
(97)
|
5
|
(42)
|
(252)
|
259
|
67
|
(31)
|
810
|
(5,138)
|
Sum of: Operating net
claims ($3,420
million) and Operating net underwriting
expenses ($1,718 million)
|
|
Expense from
reinsurance
contracts
|
(815)
|
815
|
|
|
|
|
|
|
|
|
815
|
-
|
n/a
|
|
Income from
reinsurance
contracts
|
780
|
(780)
|
|
|
|
|
|
|
|
|
(780)
|
-
|
n/a
|
|
Insurance service
result
|
402
|
-
|
58
|
(97)
|
5
|
(42)
|
(252)
|
14
|
-
|
-
|
(314)
|
88
|
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 interim condensed consolidated financial
statements (year-to-date)
|
Financial
statements
|
F/S
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
Total
|
MD&A
|
MD&A
|
|
Nine-month period
ended September 30, 2024
|
|
|
Insurance
revenue
|
19,756
|
(1,937)
|
(1,069)
|
|
|
|
|
(738)
|
(57)
|
44
|
(3,757)
|
15,999
|
Operating net
underwriting revenue
|
|
Insurance service
expense
|
(17,363)
|
1,527
|
1,165
|
(392)
|
24
|
(142)
|
(695)
|
789
|
57
|
(44)
|
2,289
|
(15,074)
|
Sum of: Operating net
claims ($9,691
million) and Operating net underwriting
expenses ($5,383 million)
|
|
Expense from
reinsurance
contracts
|
(1,937)
|
1,937
|
|
|
|
|
|
|
|
|
1,937
|
-
|
n/a
|
|
Income from
reinsurance
contracts
|
1,527
|
(1,527)
|
|
|
|
|
|
|
|
|
(1,527)
|
-
|
n/a
|
|
Insurance service
result
|
1,983
|
-
|
96
|
(392)
|
24
|
(142)
|
(695)
|
51
|
-
|
-
|
(1,058)
|
925
|
Underwriting income
(loss)
|
|
Nine-month period
ended September 30, 2023
|
|
|
Insurance
revenue
|
18,982
|
(2,470)
|
(216)
|
|
|
|
|
(1,107)
|
(181)
|
98
|
(3,876)
|
15,106
|
Operating net
underwriting revenue
|
|
Insurance service
expense
|
(17,044)
|
2,054
|
371
|
(295)
|
17
|
(111)
|
(678)
|
1,163
|
181
|
(98)
|
2,604
|
(14,440)
|
Sum of: Operating net
claims ($9,347
million) and Operating net underwriting
expenses ($5,093 million)
|
|
Expense from
reinsurance
contracts
|
(2,470)
|
2,470
|
|
|
|
|
|
|
|
|
2,470
|
-
|
n/a
|
|
Income from
reinsurance
contracts
|
2,054
|
(2,054)
|
|
|
|
|
|
|
|
|
(2,054)
|
-
|
n/a
|
|
Insurance service
result
|
1,522
|
-
|
155
|
(295)
|
17
|
(111)
|
(678)
|
56
|
-
|
-
|
(856)
|
666
|
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
|
Q3-2024
|
Q3-2023
|
YTD-2024
|
YTD-2023
|
|
Net income
attributable to shareholders, as reported under
IFRS
|
207
|
163
|
1,630
|
792
|
|
Remove: preferred share
dividends and other equity distribution
|
(17)
|
(17)
|
(62)
|
(56)
|
|
Net income
attributable to common shareholders
|
190
|
146
|
1,568
|
736
|
|
Divided by
weighted-average number of common shares (in millions)
|
178.4
|
175.9
|
178.3
|
175.5
|
|
EPS, basic (in
dollars)
|
1.07
|
0.83
|
8.79
|
4.19
|
|
Divided by
weighted-average diluted number of common shares1
(in millions)
|
178.6
|
175.9
|
178.6
|
175.5
|
|
EPS, diluted (in
dollars)
|
1.06
|
0.83
|
8.78
|
4.19
|
|
Net income
attributable to common shareholders for the last 12
months
|
2,064
|
1,066
|
|
|
|
Adjusted average common
shareholders' equity
|
14,967
|
13,695
|
|
|
|
ROE for the last 12
months
|
13.8 %
|
7.8 %
|
|
|
|
1 Includes the net effect of the
exercise of stock options. See Note 18 – Earnings per
share to the interim condensed consolidated financial
statements for more details.
|
Table 5 Reconciliation of consolidated results on a
MD&A basis with the interim condensed 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 September 30, 2024
|
|
Insurance service
result
|
28
|
|
21
|
|
|
187
|
(85)
|
151
|
|
Net investment
income
|
|
|
|
394
|
|
|
|
394
|
|
Net gains (losses) on
investment
portfolio
|
|
|
|
|
|
399
|
|
399
|
|
Net insurance
financial result
|
|
|
|
|
|
(408)
|
|
(408)
|
|
Share of profits from
investments in
associates and joint ventures
|
31
|
(4)
|
(1)
|
|
(7)
|
(2)
|
|
17
|
|
Other net gains
(losses)
|
|
|
|
|
|
5
|
|
5
|
|
Other income and
expense
|
73
|
|
(59)
|
|
|
(81)
|
(130)
|
(197)
|
|
Other finance
costs
|
|
(55)
|
|
|
|
|
|
(55)
|
|
Acquisition,
integration and restructuring
costs
|
|
|
|
|
|
(77)
|
|
(77)
|
|
Income tax benefit
(expense)
|
|
|
|
|
(17)
|
|
|
(17)
|
|
|
|
|
|
|
|
|
|
|
Total, as reported
in MD&A
|
132
|
(59)
|
(39)
|
394
|
(24)
|
23
|
(215)
|
|
|
For the quarter
ended September 30, 2023
|
|
Insurance service
result
|
26
|
|
16
|
|
|
175
|
185
|
402
|
|
Net investment
income
|
|
|
|
349
|
|
|
|
349
|
|
Net gains (losses) on
investment
portfolio
|
|
|
|
|
|
(137)
|
|
(137)
|
|
Net insurance
financial result
|
|
|
|
|
|
(149)
|
|
(149)
|
|
Share of profits from
investments in
associates and joint ventures
|
32
|
(2)
|
|
|
(7)
|
(7)
|
|
16
|
|
Other net gains
(losses)
|
|
|
|
|
|
9
|
|
9
|
|
Other income and
expense
|
58
|
|
(50)
|
|
|
(47)
|
(97)
|
(136)
|
|
Other finance
costs
|
|
(61)
|
|
|
|
|
|
(61)
|
|
Acquisition,
integration and restructuring
costs
|
|
|
|
|
|
(109)
|
|
(109)
|
|
Income tax benefit
(expense)
|
|
|
|
|
(21)
|
|
|
(21)
|
|
|
|
|
|
|
|
|
|
|
Total, as reported
in MD&A
|
116
|
(63)
|
(34)
|
349
|
(28)
|
(265)
|
88
|
|
Table 6 Reconciliation of consolidated results on a
MD&A basis with the interim condensed consolidated financial
statements (year-to-date)
|
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 nine-month
period ended September 30, 2024
|
|
Insurance service
result
|
99
|
|
43
|
|
|
524
|
1,317
|
1,983
|
|
Net investment
income
|
|
|
|
1,161
|
|
|
|
1,161
|
|
Net gains (losses) on
investment
portfolio
|
|
|
|
|
|
325
|
|
325
|
|
Net insurance
financial result
|
|
|
|
|
|
(700)
|
|
(700)
|
|
Share of profits from
investments
in associates and joint ventures
|
121
|
(12)
|
|
|
(25)
|
(17)
|
|
67
|
|
Other net gains
(losses)
|
|
|
|
|
|
259
|
|
259
|
|
Other income and
expense
|
181
|
|
(170)
|
|
|
(228)
|
(392)
|
(609)
|
|
Other finance
costs
|
|
(166)
|
|
|
|
|
|
(166)
|
|
Acquisition,
integration and
restructuring costs
|
|
|
|
|
|
(280)
|
|
(280)
|
|
Income tax benefit
(expense)
|
|
|
|
|
(397)
|
|
|
(397)
|
|
|
|
|
|
|
|
|
|
|
Total, as reported
in MD&A
|
401
|
(178)
|
(127)
|
1,161
|
(422)
|
(117)
|
925
|
|
|
For the nine-month
period ended September 30, 2023
|
|
Insurance service
result
|
71
|
|
40
|
|
|
450
|
961
|
1,522
|
|
Net investment
income
|
|
|
|
970
|
|
|
|
970
|
|
Net gains (losses) on
investment
portfolio
|
|
|
|
|
|
(283)
|
|
(283)
|
|
Net insurance
financial result
|
|
|
|
|
|
(321)
|
|
(321)
|
|
Share of profits from
investments in
associates and joint ventures
|
129
|
(10)
|
(1)
|
|
(28)
|
(16)
|
|
74
|
|
Other net gains
(losses)
|
|
|
|
|
|
28
|
|
28
|
|
Other income and
expense
|
158
|
|
(151)
|
|
|
(150)
|
(295)
|
(438)
|
|
Other finance
costs
|
|
(163)
|
|
|
|
|
|
(163)
|
|
Acquisition,
integration and
restructuring costs
|
|
|
|
|
|
(321)
|
|
(321)
|
|
Income tax benefit
(expense)
|
|
|
|
|
(268)
|
|
|
(268)
|
|
|
|
|
|
|
|
|
|
|
Total, as reported
in MD&A
|
358
|
(173)
|
(112)
|
970
|
(296)
|
(613)
|
666
|
|
Table 7 Reconciliation of AEPS and AROE to Net income
attributable to shareholders
|
Q3-2024
|
Q3-2023
|
YTD-2024
|
YTD-2023
|
|
Net income
attributable to shareholders, as reported under
IFRS
|
207
|
163
|
1,630
|
792
|
|
Remove
acquisition-related items, after tax
|
|
|
|
|
|
Amortization of
acquired intangible assets
|
58
|
50
|
171
|
149
|
|
Acquisition and
integration costs
|
32
|
44
|
128
|
127
|
|
Tax adjustments on
acquisition-related items
|
1
|
2
|
4
|
4
|
|
Net result from claims
acquired in a business combination
|
1
|
1
|
2
|
2
|
|
Adjusted net income
attributable to shareholders
|
299
|
260
|
1,935
|
1,074
|
|
Remove: preferred
share dividends and other equity distribution
|
(17)
|
(17)
|
(62)
|
(56)
|
|
Adjusted net income
attributable to common shareholders
|
282
|
243
|
1,873
|
1,018
|
|
Divided by
weighted-average diluted number of common shares (in
millions)
|
178.6
|
175.9
|
178.6
|
175.5
|
|
AEPS (in
dollars)
|
1.58
|
1.38
|
10.49
|
5.80
|
|
Adjusted net income
attributable to common shareholders for the last 12
months
|
2,492
|
1,446
|
|
|
|
Adjusted average
common shareholders' equity
|
14,967
|
13,695
|
|
|
|
AROE for the last
12 months
|
16.7 %
|
10.6 %
|
|
|
Table 8 Calculation of BVPS and BVPS (excluding
AOCI)
|
As at September
30,
|
2024
|
2023
|
|
|
|
|
Equity attributable to
shareholders, as reported under IFRS
|
17,780
|
15,392
|
|
Remove: Preferred
shares and other equity, as reported under IFRS
|
(1,619)
|
(1,619)
|
|
|
|
|
Common shareholders'
equity
|
16,161
|
13,773
|
|
Remove: AOCI, as
reported under IFRS
|
(148)
|
767
|
|
|
|
|
Common shareholders'
equity (excluding AOCI)
|
16,013
|
14,540
|
|
|
|
|
Number of common shares
outstanding at the same date (in millions)
|
178.4
|
178.3
|
|
BVPS
|
90.60
|
77.24
|
|
BVPS (excluding
AOCI)
|
89.77
|
81.54
|
Table 9 Adjusted average common shareholders' equity and
Adjusted average common shareholders' equity, excluding
AOCI
|
As at September
30,
|
2024
|
2023
|
|
|
|
|
Ending common
shareholders' equity
|
16,161
|
13,370
|
|
Remove: significant
capital transaction in the last 12 months
|
-
|
638
|
|
Ending common
shareholders' equity, excluding significant capital
transaction
|
16,161
|
14,411
|
|
Beginning common
shareholders' equity
|
13,773
|
14,340
|
|
Average common
shareholders' equity, excluding significant capital
transaction
|
14,967
|
14,376
|
|
Weighted impact of
significant capital transactions1
|
-
|
(681)
|
|
Adjusted average common shareholders'
equity
|
14,967
|
13,695
|
|
|
|
|
Ending
common shareholders' equity, excluding AOCI
|
16,013
|
14,540
|
|
Remove: significant
capital transaction in the last 12 months
|
-
|
638
|
|
Ending common
shareholders' equity, excluding AOCI and significant capital
transaction
|
16,013
|
15,178
|
|
Beginning common
shareholders' equity, excluding AOCI
|
14,540
|
15,972
|
|
Average common
shareholders' equity, excluding AOCI and significant capital
transaction
|
15,277
|
15,575
|
|
Weighted impact of
significant capital transactions1
|
-
|
(681)
|
|
Adjusted average common shareholders'
equity, excluding AOCI
|
15,277
|
14,894
|
|
1 September
30, 2023 figure represents the net weighted impact of the September
13, 2023 and February 27, 2023 significant capital
transaction.
|
Table 10 Reconciliation of Debt outstanding
(excluding hybrid debt) and Total capital to Debt outstanding,
Equity attributable to shareholders and Equity attributable to
NCI
|
As at
|
Sept. 30,
2024
|
June 30,
2024
|
Dec. 31,
2023
|
|
|
|
|
|
Debt outstanding, as
reported under IFRS
|
4,843
|
4,650
|
5,081
|
|
Remove: hybrid
subordinated notes
|
(247)
|
(247)
|
(247)
|
|
|
|
|
|
Debt outstanding
(excluding hybrid debt)
|
4,596
|
4,403
|
4,834
|
|
|
|
|
|
Debt outstanding, as
reported under IFRS
|
4,843
|
4,650
|
5,081
|
|
Equity attributable to
shareholders, as reported under IFRS
|
17,780
|
17,315
|
16,190
|
|
Preferred shares from
Equity attributable to non-controlling interests
|
-
|
285
|
285
|
|
Adjusted total
capital
|
22,623
|
22,250
|
21,556
|
|
|
|
|
|
Debt outstanding
(excluding hybrid debt)
|
4,596
|
4,403
|
4,834
|
|
Adjusted total
capital
|
22,623
|
22,250
|
21,556
|
|
Adjusted
debt-to-total capital ratio
|
20.3 %
|
19.8 %
|
22.4 %
|
|
|
|
|
|
Debt outstanding, as
reported under IFRS
|
4,843
|
4,650
|
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
|
285
|
|
Debt outstanding and
preferred shares (including NCI)
|
6,462
|
6,554
|
6,985
|
|
Adjusted total
capital
|
22,623
|
22,250
|
21,556
|
|
Total leverage
ratio
|
28.6 %
|
29.5 %
|
32.4 %
|
|
Adjusted debt-to-total
capital ratio
|
20.3 %
|
19.8 %
|
22.4 %
|
|
Preferred shares and
hybrids
|
8.3 %
|
9.7 %
|
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 recently acquired Direct Line Insurance
Group plc's brokered Commercial lines operations integration. 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
Q3-2024 MD&A.
SOURCE Intact Financial Corporation