Intact Financial Corporation expects its earnings before interest, taxes, depreciation and amortization (EBITDA) from its distribution investments to improve in 2022.

That's what CFO Louis Marcotte told financial analysts following the release of the insurer's first quarter 2021 financial results. Its distribution investments include its equity stakes in brokerage firms along with other businesses such as wholesaler Frank Cowan and damage restoration company On Side Restoration.

What accounts for the rise in distribution income? For one, EBITDA improved by 41 per cent in the first quarter of 2021 versus Q1 2020.

The integration of RSA will have a positive effect on distribution EBITDA, Marcotte says, although its effects should be apparent only in 2022. Finally, the effects of the COVID-19 pandemic have stabilized, the CFO adds.

RSA effect  

All the same, Marcotte does not expect RSA to trigger a huge change in distribution income. Several variables must be considered. One is RSA’s former reporting methods and how Intact will integrate the firm’s results.

“Where we do see some clear upside example is in the On Side business, which we expect to serve more customers going forward. But that is not going to happen until next year,” Intact's CFO points out.