Intact Financial Corporation reports improved Q1 earnings

Intact Financial Corporation reports improved Q1 earnings | Insurance Business America

Insurance News

Intact Financial Corporation reports improved Q1 earnings

Chief executive attributed strong showing to contribution from all segments

Insurance News

By
Terry Gangcuangco

RSA parent company Intact Financial Corporation has published its earnings report for the first quarter of 2024.

Here’s how the group fared in the three months ended March 31:

Metric

Q1 2024

Q1 2023

Operating direct premiums written (DPW)

CA$5.11 billion

CA$4.81 billion

Combined ratio (discounted)

86.8%

87.4%

Combined ratio (undiscounted)

91.2%

91.9%

Underwriting income

CA$687 million

CA$613 million

Operating net investment income

CA$380 million

CA$295 million

Net operating income attributable to common shareholders

CA$648 million

CA$537 million

Net income

CA$673 million

CA$377 million

Of the operating DPW, CA$3.25 billion came from Canada, CA$1.25 billion from the UK&I segment, and CA$613 million from the US. Meanwhile, the combined ratio in Canada stood at 90.7%, in UK&I 94.6%, and in the US 88.0%.

Commenting on the financial results for Q1, chief executive Charles Brindamour (pictured) said: “We delivered strong results again this quarter with contribution from all segments, resulting in mid-teens ROE (return on equity) and solid book value growth.

“We also continued to make good progress on the integration of DLG (Direct Line Group), 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.”

According to the insurance group, its total capital margin at the end of the quarter amounted to CA$2.7 billion. Meanwhile, its board approved the quarterly dividend of CA$1.21 per share on the company’s outstanding common shares.

What do you think about this story? Share your thoughts in the comments below.