Intact reports full year and Q4 results

CEO Brindamour hails group's "resilience"

Intact reports full year and Q4 results

Insurance News

By Jen Frost

Intact Financial Corporation has reported its full year and Q4 financial results.

The insurer reported net income of $2.4 billion for the full year 2022 (2021:$2.1 billion), though net income for the quarter shrank year-on-year to $419 million (Q4 2021: $701 million).

Direct premiums written (DPW) for the year were up at $22.7 billion (2021: $18 billion). Quarterly DWP of $5.5 billion (Q4 2021: $5.3 billion) increased by 5% compared to the same period the prior year.

The insurer’s 2022 operating combined ratio was 91.6%, representing a deterioration on 2021’s 88.8%. The Q4 operating combined ratio was 91.5% (2021: 87.8%).

“The resilience of our platform was again evident in 2022 with a mid-teens ROE despite elevated catastrophe losses and inflation pressures,” said Charles Brindamour, Intact CEO.

“At the same time, we made significant progress on the RSA integration, which contributed 16% to net operating income per share for the full year and drove 23% growth in premiums.

“With the business operating at a low 90s combined ratio, positive top line momentum across all segments and a strong balance sheet, we are well positioned to deliver on our financial and strategic objectives in the year ahead.”

Cat losses for Q4 were $167 million, with $77 million from Canada and the remaining $90 million from its UK&I operations.

Intact Canada results

The Canadian business reported an operating combined ratio of 88.7% for the quarter (Q4 2021: 84.4%) and 90.5% for the full year 2022 (2021: 86.7%).

“In Canada, the strong operating combined ratio of 88.7% was attributable to personal property and commercial lines, partially offset by the impact of inflation and higher weather-related frequency in personal auto,” Intact said in a press release.

Underwriting income for the country was $385 million in Q4 (Q4 2021: $513 million), and slid for the year to $1.27 billion (2021: $1.5 billion).

In Canada, Intact expects “firm market conditions to continue in personal property”, it said in a Press release.

“Personal auto premiums are expected to grow by mid single digits in response to inflation and evolving driving patterns,” the group said.

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