Intact underwriting income up 6% even as Q1 cat losses rise 2.5 points

By Chris Munro

May 8 - (The Insurer) - Intact Financial Corporation ended the first quarter of 2025 with underwriting income ticking up 6% to C$485 million ($348 million) as its combined ratio deteriorated 10 basis points to 91.3%.

The combined ratio remained relatively flat even though catastrophe losses increased by 2.5 points compared to the prior-year period.

“This is a result of our strong underlying performance in Canada and in the US, along with healthy favourable prior year development, particularly in commercial lines,” Intact said.

Its Canadian combined ratio improved 50 basis points year on year to 90.2% in 2025’s first quarter, while its U.S. combined ratio dipped by 1.2 points to 86.8%.

Intact’s UK and Ireland (UK&I) business booked a combined ratio of 97.6% in Q1 2025, down 3.0 points year on year.

Across its operations, Intact’s direct premiums written increased 3% year on year to C$5.36 billion, with the growth attributed to rate actions along with unit growth in personal lines.

Within its commercial lines business, Intact said growth was led by mid-single-digit rates in the majority of its portfolio, while the carrier continued to see pressure in large accounts.

While Canada DPW increased 7% to C$3.48 billion, U.S. DPW fell by 4% to C$1.25 billion and in the UK&I it reduced by 3% to C$631 million.

The company booked net operating income of C$717 million in the first quarter, up 11% from the prior-year period, with the increase driven by solid underwriting and investment results and with higher distribution income.

Intact’s operating net investment income increased 9% year on year to C$415 million in Q1 2025, primarily due to higher book yields, non-recurring distributions of C$9 million and favourable foreign currency movements.

“We had a strong start to 2025 across our business, with a solid underwriting performance and double-digit NOIPS growth,” said Intact CEO Charles Brindamour.

“In the context of economic uncertainties, our organization is highly resilient and well-positioned to succeed. This is demonstrated through an operating ROE of 16.5% and book value per share growth of 13% year over year.

“We are on track to continue achieving our financial objectives to exceed the industry ROE by 500 basis points and grow NOIPS 10% annually over time, while also delivering on our promise to our customers, brokers, employees,” Brindamour added.

Looking ahead over the next 12 months, Intact expects the current market conditions to continue “mainly due to catastrophe loss trends and uncertainty driven by geopolitical conflicts.”

In both personal auto and property, Intact expects low-double-digit premium growth, while in commercial and specialty lines across all geographies, the company anticipates mid-single-digit premium growth.