Intact Financial Corporation Reports Strong Q4-2024 Results Amid Elevated Catastrophe Losses

Intact Financial Corporation (IFC), Canada's largest provider of property and casualty (P&C) insurance, reported robust financial results for the fourth quarter of 2024, despite facing elevated catastrophe losses. The company's strong operating performance, disciplined underwriting, and balance sheet resilience enabled it to maintain a solid financial position and deliver steady growth.



In Q4 2024, IFC's operating direct premiums written (DPW) grew by 5% year-over-year to CAD 23.7 billion, driven by continued momentum in Personal lines and mid-single-digit rates in Commercial lines. The company's combined ratio was strong at 86.5%, reflecting solid underlying results across all geographies and lines of business. This improvement of 3.6 points from the same period in 2023 was primarily due to the benefit of profitability actions, including higher earned premiums, and milder weather.

IFC's net operating income per share (NOIPS) rose by 23% to CAD 4.93, with robust underwriting results and increased investment and distribution income. The company's book value per share (BVPS) increased by 13% from last year to CAD 92.67, reflecting earnings per share (EPS) of CAD 12.36 for 2024. IFC's operating return on equity (ROE) remained strong at 16.5% over the last 12 months, up 2.6 points year-over-year.

Despite incurring CAD 1.5 billion in catastrophe losses in 2024, IFC's balance sheet remained resilient, with a total capital margin of CAD 2.9 billion and an adjusted debt-to-total capital ratio of 19.4%. The company's strong capital generation, earnings growth, and annual dividend increases have contributed to its consistent outperformance in the P&C insurance industry.



Looking ahead, IFC expects the current insurance market conditions to persist, with low double-digit premium growth in Personal auto and property lines, and mid-single-digit premium growth in Commercial and Specialty lines across all geographies. The company is well-positioned to deliver a NOIPS growth of 10% annually over time and exceed the industry ROE by 500 basis points.

In conclusion, Intact Financial Corporation's strong Q4-2024 results demonstrate the company's ability to navigate challenging market conditions and maintain its balance sheet resilience. With a clear strategic roadmap, disciplined underwriting, and competitive advantages, IFC is well-positioned to continue its consistent outperformance in the P&C insurance industry.