RSA’s parent company, Intact Financial Corporation, has released its fourth-quarter 2024 financial results, reporting a 5% increase in operating direct premiums written (DPW).
The group highlighted that growth was primarily driven by personal lines, while commercial lines benefited from mid-single-digit rate increases and favourable market conditions.
The company’s combined ratio for the quarter stood at 86.5%, reflecting an improvement of 3.6 percentage points from the previous year. The result was attributed to higher earned premiums, the impact of profitability measures, and milder weather conditions.
Net operating income per share rose by 23% to US$4.93, supported by a 6% increase in investment income and a 13% rise in distribution income.
Intact overall continues its trend upwards; in the third quarter of the same year, the company reported that its overall DPW rose by 4% and organic growth reached 6%, despite a major 22-point catastrophe loss in the period.
Regionally, operating DPW in the UK declined by 3%, reflecting profitability measures implemented in the Direct Line Group (DLG) portfolio. Despite this, the company noted that overall conditions remained supportive of appropriate rate actions. The combined ratio for the quarter stood at 92.7%, factoring in elevated catastrophe-related losses.
Operating net investment income increased by 6% to US$398 million, driven by higher book yields. Distribution income grew by 13% to US$123 million, supported by organic expansion, merger and acquisition activity, and higher variable commissions.
Book value per share increased by 13% year over year to US$92.67, reflecting earnings per share of US$12.36 for the full year. The company also reported an operating return on equity of 16.5%, with a total capital margin of US$2.9 billion.
The board approved a dividend increase of US$0.12 per common share, bringing the total to US$1.33, which represents a 10-year compounded annual growth rate of 10%.
CEO Charles Brindamour (pictured above) said with the results finalised, Intact has now increased its dividends to shareholders for the 20th consecutive year.
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