Intact Financial closed 2024 with record earnings, posting net operating income per share (NOIPS) of $14.43 and an operating return on equity (OROE) of 16.5%. Despite a turbulent economic environment and $1.5 billion in catastrophe losses, the company improved its combined ratio to 92.2%, a two-point gain from the previous year.
The company’s performance was supported by growth across all business lines and geographies. The Personal Auto segment remained within its sub-95 combined ratio target at 95.4%, while the Personal Property segment, which bore the brunt of catastrophe losses, ended the year at 96.5%. Meanwhile, the company’s Commercial Lines maintained a low-90s combined ratio across all regions.
Premium growth reached 5%, driven by rate increases and unit expansion in Personal Lines amid a hard market. Commercial Lines benefited from favourable market conditions and rate adjustments. Net investment income rose 16%, bolstered by strategic asset allocation and active portfolio management.
With central banks lowering interest rates and market volatility on the rise, Intact projects a 3% increase in investment income to approximately $1.6 billion in 2025.
Distribution income grew 12%, supported by organic growth and acquisitions. The company expects further expansion in 2025, with a 10% increase in distribution income anticipated through BrokerLink acquisitions.
Intact also strengthened its financial position, increasing book value per share by 13% year-over-year, maintaining a total capital margin of $2.9 billion, and keeping its leverage ratio below target.
“Despite this year’s challenges, we ended 2024 in a position of strength,” said CEO Charles Brindamour.
Looking ahead, Intact is focusing on shifting consumer expectations, digital transformation, artificial intelligence, cyber risk, and climate resilience. The company continues to leverage AI-driven pricing and risk selection strategies, expand its cyber security offerings through its partnership with Resilience, and advocate for greater investment in climate adaptation.
With economic uncertainty and geopolitical tensions on the rise, Intact expects to grow NOIPS by 10% annually while maintaining an industry-leading ROE advantage. The company says its long-term strategy positions it to navigate market challenges and sustain profitability.
“At Intact, we think in terms of decades, not quarters,” said Brindamour. “This long-term view brings a discipline and stability to our business that keeps us on track during the most uncertain times. This approach means we see future-proofing our business as a key responsibility we owe to all of our stakeholders, from investors to customers to employees.”
