The following is a summary of the Intact Financial Corporation (IFCZF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Intact Financial Corporation's Q4 operating income per share was $4.22, a 45% increase from 2022 mainly due to strong underwriting, investment, and distribution results.
The combined ratio for the quarter remained at a strong 90.1%, supported by robust performance across all regions and the decoupling from UK personal lines.
Organic growth for Q4 was reported at 8% helped by rate actions across all segments.
The operating return on equity (ROE) for 2023 was 14.2%, and the capital margin was $2.7 billion.
Intact confirmed its 19th consecutive annual increase with a 10% increase in its quarterly dividend.
The consolidated expense ratio was 32.5% in the quarter, a slight decrease from last year. The full-year ratio was 33.4%, within the firm's range of 33-34%.
Operating net investment income showed a 35% increase in the quarter, driven by a higher portfolio turnover and rising book yields throughout the year.
Business Progress:
Intact's personal auto premiums grew by 12% in the quarter, personal property premium grew by 8%, and commercial lines saw a 4% growth.
There was substantial digital uptake with 1-in-5 policy transactions being completed online.
BrokerLink, the Canada-based brokerage, completed 20 acquisitions in 2023, targeting total premiums exceeding $5 billion.
The company achieved multiple strategic initiatives and sees continuing hard market conditions, making them well-prepared to capture growth opportunities.
Intact launched a new global renewable energy segment in global specialty lines.
The company is planning on accelerating profitable organic growth, leveraging strong performance.
High retention is observed among consumers, even with high rate increases due to the bundling of different auto property services.
In the US, the company expects mid to upper single-digit growth driven by profitable lines like commercial surety, excess property, and marine.
In the UK, the company anticipates running the business at a 92 combined ratio, improving it further by realizing synergies and taking remediation action on some acquired segments.
With the increasing volume of electric vehicles in their portfolio, they are refining their pricing, and similar profitability trends are noted between EVs and internal combustion vehicles.
More details: INTACT FINANCIAL CORPORATION IR
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