Intact Financial Reports Strong Q2 Earnings Amid Elevated Catastrophe Losses
Intact Financial (TSE:IFC) reported strong second-quarter results, with net operating income per share of C$3.17 and a 94.9% combined ratio despite elevated catastrophe losses. The company achieved an operating return on equity of 17%, driven by growth in Canadian personal lines where auto premiums rose 9%. CEO Charles Brindamour noted that the U.K.'s performance issues are temporary, with plans for transformation over the next two to three years. Intact reported C$416 million in catastrophe losses during Q2, primarily due to water-damage storms and property fires. Despite this, management maintained its annual catastrophe-loss guidance at C$1.2 billion. The company also highlighted a large amount of excess capital—C$3.7 billion—which it plans to use for potential acquisitions. The underlying current accident-year loss ratio was 59.1%, with favorable prior-year development contributing positively. CFO Ken Anderson noted that conservative reserving practices have supported consistent results over time, and the company expects a consolidated expense ratio of between 33% and 34% in 2026.
Topics: capital allocation catastrophe losses financial results insurance