Highlights
(TSX: IFC)
(in Canadian dollars except as otherwise noted)
TORONTO, July 31, 2018 /CNW/ -
Charles Brindamour, Chief Executive Officer, said:
"Our business once again demonstrated its resilience despite higher than expected catastrophe losses. Actions in personal auto are gaining momentum and results are trending towards a mid-90's combined ratio run-rate by year-end. The fundamentals of our Canadian property and commercial lines remain very strong and results in our U.S. Specialty business continue to improve."
Consolidated Highlights1 | ||||||||||
(in millions of Canadian dollars except as | ||||||||||
otherwise noted) | Q2-2018 | Q2-2017 | Change | YTD 2018 | YTD 2017 | Change | ||||
Direct premiums written | 2,908 | 2,497 | 16% | 4,990 | 4,234 | 18% | ||||
Combined ratio | 96.1% | 95.0% | 1.1 pts | 97.6% | 96.6% | 1.0 pts | ||||
Underwriting income | 93 | 103 | (10) | 112 | 138 | (26) | ||||
Net investment income | 134 | 105 | 29 | 256 | 210 | 46 | ||||
Net distribution income | 52 | 50 | 2 | 76 | 74 | 2 | ||||
Net operating income | 201 | 193 | 4% | 321 | 316 | 2% | ||||
Net income | 161 | 243 | (34)% | 264 | 389 | (32)% | ||||
Per share measures (in dollars) | ||||||||||
Net operating income per share (NOIPS) | 1.38 | 1.44 | (4)% | 2.19 | 2.34 | (6)% | ||||
Earnings per share (EPS) | 1.10 | 1.82 | (40)% | 1.78 | 2.90 | (39)% | ||||
Operating ROE for the last 12 months | 11.9% | 12.1% | (0.2) pts | |||||||
Book value per share (in dollars) | 48.64 | 42.16 | 15% | |||||||
Total capital margin2 | 1,243 | 1,014 | 229 | |||||||
Debt-to-total-capital ratio | 22.5% | 22.8% | (0.3) pts |
(1) | This table contains non-IFRS financial measures. Please refer to Section 14 – Non-IFRS financial measures in the Management's Discussion and Analysis for further details. |
(2) | Aggregate of capital in excess of company action levels in regulated entities (170% MCT, 200% RBC) plus available cash in unregulated entities. Please refer to Section 11– Capital management in the Management's Discussion and Analysis for further details. |
Dividend
Industry Outlook
Insurance Business Performance
(in millions of Canadian dollars except | |||||||
as otherwise noted) | Q2-2018 | Q2-2017 | Change | YTD 2018 | YTD 2017 | Change | |
Direct premiums written | |||||||
Canada | 2,534 | 2,497 | 2% | 4,295 | 4,234 | 1% | |
U.S. | 374 | - | n/a | 695 | - | n/a | |
2,908 | 2,497 | 16% | 4,990 | 4,234 | 18% | ||
Combined ratio | |||||||
Canada | 96.6% | 95.0% | 1.6 pts | 98.2% | 96.6% | 1.6 pts | |
U.S. | 93.8% | - | n/a | 94.5% | - | n/a | |
96.1% | 95.0% | 1.1 pts | 97.6% | 96.6% | 1.0 pts | ||
Underwriting income | |||||||
Canada | 72 | 103 | (31) | 76 | 138 | (62) | |
U.S. | 21 | - | 21 | 36 | - | 36 | |
93 | 103 | (10) | 112 | 138 | (26) | ||
Current year catastrophe claims | 142 | 105 | 37 | 178 | 193 | (15) |
Lines of Business
P&C Canada
P&C U.S.
Investments
Net Income
Balance Sheet
Analysts' Estimates
Management's Discussion and Analysis (MD&A) and 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 Q2-2018 MD&A as well as the Q2-2018 Consolidated Financial Statements, which are available on the Company's website at www.intactfc.com and on SEDAR at www.sedar.com.
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
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 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 647 427-7450 or 1 888 231-8191 (toll-free in North America). Please call 10 minutes before the start of the call. A replay of the call will be available on August 1, 2018 at 2:00 p.m. ET until midnight on August 8. To listen to the replay, call 1-855-859-2056 (toll-free in North America), passcode 2555499. 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 and a leading provider of specialty insurance in North America, with close to $10 billion in total annual premiums. The Company has 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.
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 and the U.S., the Company's business outlook and the Company's growth prospects. 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 and annual MD&A. 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 MD&A.
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Carmen Duarte
781.332.7268
cduarte@onebeacon.com
Sasha Aronson
781.332.7165
saronson@onebeacon.com
Nancy Hemmerich
860.321.2801
nhemmerich@onebeacon.com