Intact – Supercharge Your Returns With This Insurance Company

Intact Financial Corporation (IFC) is the largest provider of property and casualty insurance in Canada and a leading provider of specialty insurance in North America.

The company’s segments are Canada, U.S., corporate, and others. About 85% of Intact’s revenues are derived from Canada and the remaining 15% is from the US. In terms of business segments, personal auto accounts for nearly 36% of DPW (direct premium written), followed by personal property (21%), commercial lines Canada (18%), and North American specialty (25%).

The company operates through Intact insurance, BrokerLink, OneBeacon, and Belairdirect banners. Its large coast-to-coast presence and cross-border services help serve customers better.

The company offers a comprehensive range of insurance products and caters to the financial needs of a wide range of clients ranging from the personal, business, public sector to institutional clients.

It serves more than five million personal, business, and public sector clients in Canada and the U.S. About one in every five Canadians is a customer of Intact Financial products and services.

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Key Investment Data


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Revenue Growth & Market Exposure

Intact Financial earns close to $11 billion in annual premiums. A multi-channel distribution strategy has helped the company reach different markets and address varied customer preferences.

Intact Financial operates through a large network of offices and brokers such as BrokerLink and OneBeacon Insurance in Canada and the US, respectively. Belairdirect does not involve brokers and helps Intact to reach its clients directly. Belairdirect is one of the most recognized direct-to-consumer insurance brands in the market.

Intact Financial has captured a 17% share in the P&C insurance market in Canada increasing from ~11% in 2009.

IFC Growth 2021
Intact Investor Presentation

Intact Financial has a century-old history of operations which has helped the company develop a strong understanding of its clients’ needs. A disciplined approach, large scale, and in-house claims expertise support in retaining and attracting clients. Intact is a customer-centric business; its wide range of products and customized solutions are the keys to its success.

Investments in digital transformation will make the customer experience even simpler, faster, and convenient. The COVID-19 crisis has further reinforced the need to accelerate initiatives towards a seamless digital experience.

The company has been growing through acquisitions and has a successful track record of more than 16 accretive acquisitions since 1988. The acquisition of OneBeacon in 2017 strengthened Intact Financial’s position as a leading specialty insurer in North America with a strong focus on small and midsize businesses.

It completed two strategic acquisitions last year, The Guarantee Company of North America and Frank Cowan Company, and On Side Restoration. Key acquisitions have consolidated Intact’s footprint in the fragmented specialty lines market and helped in achieving over $200 million in synergies.

IFC Growth 2021 1
Intact Investor Presentation

The company registered a growth of 46% in NOIPS driven by solid underwriting performance across all lines and strong distribution results.

For the third quarter, Intact registered a Premium growth of 8% YoY as a result of strong growth in Canada. The combined ratio also improved to ~87% reflecting strength across both personal and commercial lines. The US commercial premium was negatively impacted due to the pandemic, despite organic growth in other lines. Intact expects hard market conditions to continue in personal property and U.S. commercial.

The company is estimating growth in a mid-to-high single-digit range over the next 12 months. The commercial lines are also expected to witness high demand in the coming months but the personal auto might experience slow growth.


Intact Financial is a Canadian Dividend Aristocrat growing its dividend by 9%+ CAGR over the last decade. The last dividend hike of 9.2%, marked the 16th consecutive annual increase since the IPO. The company sports a modest dividend yield of 2.3%. The company paid a quarterly dividend of $0.83 per share to its shareholders.

Though Intact has a payout ratio of 52%, the company has been growing its earnings at least 8% per year over time. Intact Financial’s sound record of capital generation and disciplined deployment has supported shareholder returns while meeting its growth objectives. The company has invested over $7.5 billion in growth opportunities and returned $627 million through share buybacks since 2009.

Intact has a proven 10-year record of strong performance. The company has registered a NOIPS growth of 10% CAGR in the last decade. Its multi-channel distribution and large scale provide an edge over the competition. The Canadian P&C insurance is a $60 billion market representing ~3% of GDP. Intact expects to grow its NOIPS at 10% p.a. over time and generate $6 billion in annual DPW by 2025.

The company is in a good position to consolidate the fragmented North American specialty market and optimize distribution. Intact is also well placed to unlock value through accretive acquisitions. The winning combination of organic growth and strategic acquisitions will drive good performance in the future. Intact is targeting market share growth, through customer-driven transformation, expanding distribution, and massive digital & AI deployments. 

A strong balance sheet, resilient operating income, and reasonable payout ratio support dividends. Intact has a solid dividend growth streak of 16 years and a safe payout ratio and should continue to outperform in the longer term.


The P&C insurance industry is highly competitive. As Canada’s largest P&C insurer, Intact has a 17% market share in a huge and fragmented industry. The company is nearly 80% bigger than the second largest player and ~17 times larger than the average P&C insurer.

Intact Financial competes with a large number of domestic and foreign insurers, as well as several Canadian banks that sell insurance products. Intact Financial is well-positioned to gain market share in the fragmented Canadian market. It is a leading provider of specialty insurance in North America with over $11 billionin annual premiums.

Bottom Line

Intact Financial is in a unique position to grow by leveraging its deep distribution partnerships, expanding its geographic footprint, and investing in new specialty markets.

Though the company’s business was affected as a result of the crisis it was back in its game supported by the relief rally. Its leading market share position enables it to attract new customers, as well as expand geographies.

The company is expecting future growth to come from a strong leadership position in Canada and specialty business in North America.

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DISCLAIMER: Please note that this blog post represents my opinion and not an advice/recommendation. I am not a financial adviser, I am not qualified to give financial advice. Before you buy any stocks/funds consult with a qualified financial planner. Make your investment decisions at your own risk – see my full disclaimer for more details.