By Josh Recamara
Intact Financial Corporation reported a strong Q3, driven by solid underwriting performance, improved investment income and sustained premium growth across key business lines.
Operating direct premiums written (DPW) grew 6% year-over-year to $6.6 billion, with strength in both Personal and Commercial lines, while the combined ratio improved sharply to 89.8%, down 14 points from the same period last year.
Net operating income per share reached $4.46, well above analyst estimates, supported by lower catastrophe losses, improved margins, and stable investment returns. Operating return on equity (ROE) climbed to 19.6%, a four-point increase from Q3 2024, reflecting the insurer’s continued ability to outperform through market cycles.
CEO Charles Brindamour said the quarter demonstrated the resilience of Intact’s diversified platform, highlighting strong premium momentum and underwriting discipline. The company remains focused on achieving its long-term goals of 500 basis points of ROE outperformance and 10% annual growth in net operating income per share.
Underwriting performance led by Canada and the US
Intact's Canadian operations delivered standout results, outperforming the broader market in both growth and profitability.
Personal premiums rose 11%, supported by unit growth and ongoing pricing adjustments, achieving a 91.5% combined ratio. Personal property premiums increased 10%, with a solid 92.4% combined ratio despite elevated catastrophe losses.
Commercial lines in Canada grew 3% and recorded an 82.8% combined ratio, reflecting favourable prior-year reserve development and ongoing profitability measures.
In the US, premium growth accelerated to 8%, driven by new business and higher retention rates. The combined ratio improved to 83.6%, marking a four-point gain from the prior year. The UK and Ireland segment, however, saw DPW decline 5% as remediation of the Direct Line Group portfolio and strategic exits continued.
Meanwhile, the company's balance sheet remains robust, with a total capital margin of $3.3 billion and a book value per share of $103.16, up 14% year-over-year. Intact's adjusted debt-to-total capital ratio improved to 17.9%, reflecting strong capital generation.
The board also declared a quarterly dividend of $1.33 per common share, payable Dec. 31, maintaining the insurer's steady capital return strategy.
Industry outlook remains positive
Intact maintained its outlook for the next 12 months, expecting high single- to low double-digit premium growth in personal lines and mid-single-digit growth across commercial and specialty markets.
With underwriting results improving across geographies and investment income trending upward, Intact’s latest results position it well to continue delivering profitable growth amid a stabilizing property and casualty insurance environment in Canada, the US., and the UK.