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.
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.
