Overview

We are the largest provider of property and casualty (P&C) insurance in Canada and a leading provider of specialty insurance in North America, with close to $10 billion in total annual premiums¹. We have over 13,000 full- and part-time employees who serve more than five million personal, business, public sector and institutional clients through offices in Canada and the U.S. In Canada, Intact distributes insurance under the Intact Insurance brand through a wide network of brokers, including its wholly-owned subsidiary BrokerLink, and directly to consumers through belairdirect. In the U.S., OneBeacon Insurance Group, a wholly-owned subsidiary, provides specialty insurance products through independent agencies, brokers, wholesalers and managing general agencies.

1. DPW (pro-forma) for 2017 comprises the DPW of P&C Canada and the DPW (pro-forma) of P&C U.S, using an exchange rate of 1.30

Financial Highlights

Direct Premiums Written and Investment Mix

Interactive Underwriting Analysis

Industry-Leading Performance

Our Brands

Intact Insurance

Intact Insurance is Canada's largest home, auto and business insurance company, the choice of more than four million consumers. Its coast-to-coast presence and its strong relationship with insurance brokers mean the company can provide the outstanding service, comfort and continuity customers deserve. Intact Insurance is a member company of Intact Financial Corporation (TSX: IFC).

BrokerLink

BrokerLink is one of the largest brokerages in Canada. It offers consumers products and services from a number of insurance companies, including Intact Insurance and Jevco.

belairdirect

belairdirect provides complete home and auto insurance solutions directly to consumers in the Maritimes, Québec, Ontario, Alberta and British Columbia. With belairdirect, consumers have the option of buying coverage over the phone, via the Internet, or in person. belairdirect is one of the most recognized direct-to-consumer insurance brands in its markets, responsible for more than $1.3 billion in premiums written through our direct-to-consumer distribution channel.

OneBeacon

OneBeacon Insurance Group Holdings, Ltd. (“OneBeacon”) is a wholly-owned subsidiary of Intact Financial Corporation (TSX: IFC). OneBeacon’s underwriting companies offer a range of specialty insurance products sold through independent agencies, regional and national brokers, wholesalers and managing general agencies. Each business is managed by an experienced team of specialty insurance professionals focused on a specific customer group or industry segment, and providing distinct products and tailored coverages and services. OneBeacon’s solutions target group accident and health; commercial surety; entertainment; environmental; excess property; financial institutions; financial services; healthcare; management liability; ocean and inland marine; public entities; technology; and tuition refund.

Financial highlights

(in millions of Canadian dollars, except as noted)

Consolidated Performance	2017	2016	2015	2014	2013
Direct premiums written	8,747	8,293	7,922	7,461	7,345
Net earned premiums	8,530	7,946	7,535	7,207	7,014
Underwriting income	486	375	628	519	142
Net investment income	432	414	424	427	406
Net distribution income	132	111	104	75	75
Net operating income	771	660	860	767	500
Non-operating gains (losses)	(31)	(152)	(216)	10	(95)
Net income	792	541	706	782	431
Combined ratio	94.3%	95.3%	91.7%	92.8%	98.0%
Net operating income per share ($)	5.60	4.88	6.38	5.67	3.62
Earnings per share ($)	5.75	3.97	5.20	5.79	3.10
Book value per share ($)	48.00	42.72	39.83	37.75	33.94
Operating return on equity	12.9%	12.0%	16.6%	16.3%	11.2%
Return on equity	12.8%	9.6%	13.4%	16.1%	9.3%
Adjusted return on equity	13.0%	11.0%	14.3%	16.8%	10.3%

Direct premiums written (DPW) and investment mix

$8.7B

DPW
BY BUSINESS LINE

(excluding pools, %)

Personal auto	44%
Personal property	24%
Commercial lines – CAN	28%
Commercial lines – U.S.¹	4%

$8.7B

DPW
BY BRAND

(excluding pools, %)

Intact Insurance	72%
BrokerLink	9%
belairdirect	15%
OneBeacon¹	4%

$16.9B

Of Investments

(mix, net of hedging positions, % of fair value)

Fixed income	72%
Common shares	14%
Preferred shares	8%
Loans	2%
Cash and short-term notes	4%

1. Includes the DPW of OneBeacon since its acquisition on September 28, 2017

Interactive underwriting analysis

Q1
Q2
Q3
Q4
Full year

Commercial lines - U.S. commenced in Q4 2017

Personal auto

Personal property

Commercial lines
– Canada

Commercial lines
– U.S.

All lines of business

Date

2013
2014
2015
2016
2017

Factors

Expense ratio
CAT loss ratio (including reinstatement premiums)
Underlying current year loss ratio
Unfavourable (favourable) PYD ratio

Lines of Business

Personal auto
Personal property
Commercial lines – Canada
Commercial lines – U.S.
All lines of business

Download Excel File

Personal auto ratios

	2013	2014	2015	2016	2017
Underlying current year loss ratio	76.5%	80.2%	86.3%	79.0%	79.9%
CAT loss ratio (including reinstatement premiums)	0.0%	0.0%	0.0%	0.0%	0.3%
Unfavourable (favourable) PYD ratio	(8.8)%	(7.4)%	(10.7)%	(7.5)%	(1.0)%
Expense ratio	26.4%	24.2%	24.7%	24.9%	23.4%
Combined ratio	94.1%	97.0%	100.3%	96.4%	102.6%

Personal property ratios

	2013	2014	2015	2016	2017
Underlying current year loss ratio	60.8%	54.8%	53.9%	55.0%	52.2%
CAT loss ratio (including reinstatement premiums)	2.6%	12.0%	0.0%	2.1%	11.5%
Unfavourable (favourable) PYD ratio	(5.4)%	(8.6)%	(7.4)%	(8.8)%	(3.4)%
Expense ratio	35.5%	33.6%	34.2%	34.6%	32.5%
Combined ratio	93.5%	91.8%	80.7%	82.9%	92.8%

Commercial lines – Canada – ratios

	2013	2014	2015	2016	2017
Underlying current year loss ratio	61.8%	68.5%	67.8%	65.4%	65.6%
CAT loss ratio (including reinstatement premiums)	1.5%	5.4%	1.9%	2.0%	5.0%
Unfavourable (favourable) PYD ratio	(3.5)%	(8.6)%	(12.7)%	(9.7)%	(9.6)%
Expense ratio	38.2%	35.8%	35.5%	36.2%	34.9%
Combined ratio	98.0%	101.1%	92.5%	93.9%	95.9%

All lines of business – ratios

	2013	2014	2015	2016	2017
Underlying current year loss ratio	68.6%	71.1%	73.1%	69.2%	68.8%
CAT loss ratio (including reinstatement premiums)	1.0%	4.3%	0.6%	1.2%	4.5%
Unfavourable (favourable) PYD ratio	(6.4)%	(8.1)%	(10.5)%	(8.4)%	(4.1)%
Expense ratio	31.9%	29.8%	30.2%	30.5%	29.0%
Combined ratio	95.1%	97.1%	93.4%	92.5%	98.2%

Personal auto ratios

	2013	2014	2015	2016	2017
Underlying current year loss ratio	65.3%	66.2%	69.0%	73.6%	72.5%
CAT loss ratio (including reinstatement premiums)	1.8%	0.0%	0.2%	1.2%	0.4%
Unfavourable (favourable) PYD ratio	(5.7)%	(0.4)%	(4.1)%	(2.6)%	1.6%
Expense ratio	25.8%	25.7%	25.2%	25.4%	23.3%
Combined ratio	87.2%	91.5%	90.3%	97.6%	97.8%

Personal property ratios

	2013	2014	2015	2016	2017
Underlying current year loss ratio	57.4%	59.0%	60.4%	50.9%	52.1%
CAT loss ratio (including reinstatement premiums)	24.7%	5.3%	2.3%	23.7%	16.9%
Unfavourable (favourable) PYD ratio	(5.5)%	(5.5)%	(4.4)%	(4.6)%	(2.6)%
Expense ratio	36.7%	34.7%	34.4%	36.7%	33.1%
Combined ratio	113.3%	93.5%	92.7%	106.7%	99.5%

Commercial lines – Canada – ratios

	2013	2014	2015	2016	2017
Underlying current year loss ratio	59.6%	62.5%	64.3%	55.6%	55.5%
CAT loss ratio (including reinstatement premiums)	10.7%	1.9%	1.1%	10.9%	2.5%
Unfavourable (favourable) PYD ratio	(5.2)%	(7.2)%	(9.0)%	(8.5)%	(7.2)%
Expense ratio	37.8%	37.5%	36.2%	37.9%	35.9%
Combined ratio	102.9%	94.7%	92.6%	95.9%	86.7%

All lines of business – ratios

	2013	2014	2015	2016	2017
Underlying current year loss ratio	61.8%	63.3%	65.5%	62.9%	62.5%
CAT loss ratio (including reinstatement premiums)	9.4%	1.9%	1.1%	9.4%	5.1%
Unfavourable (favourable) PYD ratio	(5.5)%	(3.6)%	(5.7)%	(4.8)%	(2.0)%
Expense ratio	31.8%	31.3%	30.7%	31.7%	29.4%
Combined ratio	97.5%	92.9%	91.6%	99.2%	95.0%

Personal auto ratios

	2013	2014	2015	2016	2017
Underlying current year loss ratio	70.4%	71.0%	73.0%	75.1%	77.3%
CAT loss ratio (including reinstatement premiums)	3.4%	4.9%	3.4%	6.2%	2.0%
Unfavourable (favourable) PYD ratio	(6.5)%	(4.5)%	(6.4)%	(1.2)%	3.2%
Expense ratio	25.7%	24.4%	24.4%	24.2%	22.6%
Combined ratio	93.0%	95.8%	94.4%	104.3%	105.1%

Personal property ratios

	2013	2014	2015	2016	2017
Underlying current year loss ratio	55.3%	50.3%	58.5%	50.3%	45.1%
CAT loss ratio (including reinstatement premiums)	35.7%	16.5%	6.9%	18.8%	10.9%
Unfavourable (favourable) PYD ratio	(1.9)%	(2.4)%	(1.7)%	(2.9)%	(2.9)%
Expense ratio	35.6%	33.3%	33.7%	33.5%	31.9%
Combined ratio	124.7%	97.7%	97.4%	99.7%	85.0%

Commercial lines – Canada – ratios

	2013	2014	2015	2016	2017
Underlying current year loss ratio	52.9%	53.9%	56.7%	53.7%	52.3%
CAT loss ratio (including reinstatement premiums)	19.8%	2.8%	3.5%	2.6%	2.4%
Unfavourable (favourable) PYD ratio	(7.4)%	(5.7)%	(7.2)%	(7.5)%	(11.5)%
Expense ratio	37.2%	35.0%	35.2%	34.7%	33.3%
Combined ratio	102.5%	86.0%	88.2%	83.5%	76.5%

All lines of business – ratios

	2013	2014	2015	2016	2017
Underlying current year loss ratio	61.7%	61.1%	64.8%	62.8%	62.1%
CAT loss ratio (including reinstatement premiums)	15.5%	6.9%	4.1%	8.1%	4.3%
Unfavourable (favourable) PYD ratio	(5.8)%	(4.4)%	(5.5)%	(3.5)%	(2.6)%
Expense ratio	31.4%	29.6%	29.8%	29.6%	28.0%
Combined ratio	102.8%	93.2%	93.2%	97.0%	91.8%

Personal auto ratios

	2013	2014	2015	2016	2017
Underlying current year loss ratio	76.6%	73.5%	73.9%	78.5%	81.4%
CAT loss ratio (including reinstatement premiums)	0.4%	(0.1)%	0.4%	0.4%	0.2%
Unfavourable (favourable) PYD ratio	(1.7)%	(4.5)%	(3.3)%	(1.4)%	(2.8)%
Expense ratio	23.1%	24.8%	25.9%	23.4%	22.4%
Combined ratio	98.4%	93.7%	96.9%	100.9%	101.2%

Personal property ratios

	2013	2014	2015	2016	2017
Underlying current year loss ratio	45.7%	40.3%	41.6%	39.9%	49.3%
CAT loss ratio (including reinstatement premiums)	11.0%	0.9%	0.0%	2.6%	1.9%
Unfavourable (favourable) PYD ratio	(4.2)%	(1.2)%	(2.8)%	(2.8)%	(3.2)%
Expense ratio	33.9%	33.6%	33.9%	35.9%	31.7%
Combined ratio	86.4%	73.6%	72.7%	75.6%	79.7%

Commercial lines – Canada – ratios

	2013	2014	2015	2016	2017
Underlying current year loss ratio	69.1%	60.5%	57.4%	62.0%	56.9%
CAT loss ratio (including reinstatement premiums)	1.7%	1.3%	(0.5)%	2.9%	2.9%
Unfavourable (favourable) PYD ratio	(6.3)%	(6.1)%	(5.5)%	(5.8)%	(5.6)%
Expense ratio	35.6%	34.8%	36.6%	34.1%	33.2%
Combined ratio	100.1%	90.5%	88.0%	93.2%	87.4%

Commercial lines – U.S. – ratios

	2013	2014	2015	2016	2017
Underlying current year loss ratio	-	-	-	-	55.9%
CAT loss ratio (including reinstatement premiums)	-	-	-	-	0.0%
Unfavourable (favourable) PYD ratio	-	-	-	-	4.6%
Expense ratio	-	-	-	-	36.9%
Combined ratio	-	-	-	-	97.4%

All lines of business – ratios

	2013	2014	2015	2016	2017
Underlying current year loss ratio	67.6%	62.0%	61.4%	64.2%	64.8%
CAT loss ratio (including reinstatement premiums)	3.0%	0.5%	0.0%	1.8%	1.3%
Unfavourable (favourable) PYD ratio	(3.6)%	(4.2)%	(3.8)%	(3.1)%	(2.6)%
Expense ratio	29.3%	29.9%	31.0%	29.6%	29.1%
Combined ratio	96.3%	88.2%	88.6%	92.5%	92.6%

Personal auto ratios

	2013	2014	2015	2016	2017
Underlying current year loss ratio	72.2%	72.7%	75.4%	76.5%	77.7%
CAT loss ratio (including reinstatement premiums)	1.4%	1.2%	1.1%	2.0%	0.7%
Unfavourable (favourable) PYD ratio	(5.6)%	(4.2)%	(6.1)%	(3.1)%	0.3%
Expense ratio	25.2%	24.8%	25.0%	24.5%	23.0%
Combined ratio	93.2%	94.5%	95.4%	99.9%	101.7%

Personal property ratios

	2013	2014	2015	2016	2017
Underlying current year loss ratio	54.7%	51.0%	53.5%	48.9%	49.6%
CAT loss ratio (including reinstatement premiums)	18.6%	8.6%	2.3%	11.6%	10.2%
Unfavourable (favourable) PYD ratio	(4.3)%	(4.4)%	(4.0)%	(4.7)%	(3.0)%
Expense ratio	35.4%	33.8%	34.1%	35.1%	32.3%
Combined ratio	104.4%	89.0%	85.9%	90.9%	89.1%

Commercial lines – Canada – ratios

	2013	2014	2015	2016	2017
Underlying current year loss ratio	61.4%	61.3%	61.3%	59.1%	57.5%
CAT loss ratio (including reinstatement premiums)	7.9%	2.8%	1.6%	4.6%	3.1%
Unfavourable (favourable) PYD ratio	(5.6)%	(6.9)%	(8.5)%	(7.9)%	(8.4)%
Expense ratio	37.2%	35.7%	35.9%	35.7%	34.3%
Combined ratio	100.9%	92.9%	90.3%	91.5%	86.5%

All lines of business – ratios

	2013	2014	2015	2016	2017
Underlying current year loss ratio	64.9%	64.3%	66.1%	64.8%	64.5%
CAT loss ratio (including reinstatement premiums)	7.3%	3.3%	1.5%	5.0%	3.7%
Unfavourable (favourable) PYD ratio	(5.3)%	(5.0)%	(6.3)%	(4.9)%	(2.8)%
Expense ratio	31.1%	30.2%	30.4%	30.4%	28.9%
Combined ratio	98.0%	92.8%	91.7%	95.3%	94.3%

Download Excel File

Industry-leading performance

Total shareholder return

On a total shareholder return basis (including dividends), our 13% CAGR over the past five years compares favourably versus our peers.

	One-year	Three-year	Five-year
Intact Financial Corp.	12.1%	35.0%	84.4%
S&P/TSX Composite	9.1%	21.1%	51.2%
S&P/TSX Banks	14.6%	42.6%	98.0%
S&P/TSX Life Insurance	9.7%	28.8%	108.3%
S&P U.S. P&C Insurance	22.4%	55.1%	148.3%

Source: Bloomberg

Dividends per share growth

We are proud of our dividend growth track record, including a five-year CAGR of 10%, which compares favourably versus our peers.

	One-year	Three-year	Five-year
Intact Financial Corp.	10.3%	33.3%	60.0%
S&P/TSX Composite	5.7%	6.1%	20.5%
S&P/TSX Banks	7.0%	23.0%	46.2%
S&P/TSX Life Insurance	8.5%	28.4%	32.8%
S&P U.S. P&C Insurance	4.1%	13.6%	248.9%

Source: Bloomberg

Canadian industry outperformance

Direct premiums written growth (%)

(Base 100 = 2008)

The combination of our organic growth and accretive acquisitions has led to a significant growth outperformance versus the industry.

IFC Industry Benchmark (top 20)

Year	IFC	Industry Benchmark (top 20)
2009	102	103
2010	107	108
2011	122	112
2012	164	115
2013	176	119
2014	179	122
2015	190	126
2016	197	127
2017	201	133

Combined ratio¹ (%)

Our sophisticated pricing, underwriting discipline and in-house claims expertise have enabled us to outperform the industry’s combined ratio.

IFC Industry Benchmark (top 20)

Year	IFC	Industry Benchmark (top 20)
2009	99.7%	104.1%
2010	96.3%	104.3%
2011	96.1%	101.0%
2012	93.4%	98.1%
2013	97.3%	101.8%
2014	94.5%	101.0%
2015	92.8%	98.0%
2016	95.2%	99.9%
2017	94.1%	100.3%

Return on equity² (%)

Our superior underwriting results, investment performance and capital management have led to a better ROE than the industry.

IFC Canadian P&C industry

Year	IFC	Canadian P&C industry
2009	4.3%	6.4%
2010	16.7%	6.0%
2011	17.4%	6.3%
2012	16.5%	10.3%
2013	10.3%	6.2%
2014	16.8%	8.6%
2015	14.3%	9.2%
2016	11.0%	5.2%
2017	13.0%	6.1%

Market share by company

With an estimated market share of 17%, we are approximately 18 times the size of the average company in the industry.

Market share (%) Direct premiums written ($ billions)

	Direct premiums written ($ billions)	Market share (%)
IFC	8.4	16.6%
#2	5.3	10.4%
#3	4.7	9.2%
#4	3.1	6.0%
#5	3.0	5.9%

1. Combined ratio includes the market yield adjustment (“MYA”).
2. ROEs reflect IFRS beginning in 2010. Since 2011, IFC’s ROE is adjusted return on common shareholders’ equity (“AROE”), as defined in our glossary.

Industry data: IFC estimate based on MSA Research Inc. data, excluding Lloyd’s, ICBC, SGI, SAF, Genworth, Canada Guaranty Mortgage Insurance Company and IFC, as at December 31, 2017
Industry benchmark consists of the 20 largest comparable companies in the P&C industry based on industry data

2017 Annual Report	Download
Management’s Discussion and Analysis for the year ended December 31, 2017	Download
Consolidated financial statements for the year ended December 31, 2017	Download
Underwriting performance data	Download

Our Brands

Intact Insurance

BrokerLink

belairdirect

OneBeacon

$8.7B

DPWBY BUSINESS LINE

$8.7B

DPWBY BRAND

$16.9B

Of Investments

Personal auto

Personal property

Commercial lines– Canada

Commercial lines– U.S.

All lines of business

How To Use The Interactive Chart

Total shareholder return

On a total shareholder return basis (including dividends), our 13% CAGR over the past five years compares favourably versus our peers.

Dividends per share growth

We are proud of our dividend growth track record, including a five-year CAGR of 10%, which compares favourably versus our peers.

Direct premiums written growth (%)

The combination of our organic growth and accretive acquisitions has led to a significant growth outperformance versus the industry.

Combined ratio1 (%)

Our sophisticated pricing, underwriting discipline and in-house claims expertise have enabled us to outperform the industry’s combined ratio.

Return on equity2 (%)

Our superior underwriting results, investment performance and capital management have led to a better ROE than the industry.

Market share by company

With an estimated market share of 17%, we are approximately 18 times the size of the average company in the industry.

Disclaimer

Forward-looking Statements

Downloads

Printable version of website

DPW
BY BUSINESS LINE

DPW
BY BRAND

Commercial lines
– Canada

Commercial lines
– U.S.

Combined ratio¹ (%)

Return on equity² (%)