Charles Brindamour still not satisfied with Intact’s resultsBy Hubert Roy | May 24 2019 01:30PM
Until his company generates a return on equity of 15%, Charles Brindamour says he is not satisfied with Intact Financial Corporation’s results.
At the end of fourth-quarter 2018, Intact had not reached this goal. Brindamour said he was not satisfied. The same scenario recurred in first-quarter 2019: the insurer posted a return on equity of 12.8%.
“We’re not satisfied with the 12% operating ROE. Not satisfied,” he told financial analysts in a conference call on May 8. Insurance Journal consulted the official transcript.
Even if claims frequency rises, Brindamour confirms that his company has what it takes to generate a return on equity above 15%, quarter after quarter. This objective is especially ambitious given the industry ROE of below 3%.
Despite unfavourable weather conditions for insurers, Brindamour points out that his company’s results are much more stable than those of other industry players.
To outperform the industry, Intact is focusing on data segmentation, claims management and investment in distribution, Brindamour told the analysts.
To bolster data segmentation, Intact has invested massively in artificial intelligence to identify new variables. In claims management, Intact uses digital technology and is boosting in-sourcing of its processes. Lastly, Brindamour describes investments in distribution as “far more stable than the personal lines insurance business.”