Intact Financial Corporation (IFC) reports net income up 44 per cent in the fourth quarter of 2025 and 46 per cent for the full 2025 fiscal year compared with the corresponding periods a year earlier.
For the full year, net income totalled $3.4 billion, compared with $2.3 billion the previous year.
On February 11, during the performance review with financial analysts attended by Insurance Portal, Intact CEO Charles Brindamour emphasized the company’s performance, which outpaced both the industry and its own expectations. “This track record is driven by three levers: solid organic growth, margin expansion, and accretive capital deployment,” he says.
Underwriting income
In terms of underwriting results, the company posted net underwriting income of $2.7 billion in 2025, up 61 per cent from $1.7 billion reported in 2024.
In more detail:
- In Canada, net underwriting income totalled $2.1 billion in 2025, compared with $1.1 billion in 2024, an increase of 94 per cent. Even in personal auto insurance, a segment facing challenges in certain provinces, the company reported net underwriting income of $471 million in 2025, up 61 per cent year over year.
- In the UK and International segment, net underwriting income reached $224 million in 2025, compared with $301 million in 2024, a decrease of 26 per cent.
- In the United States, net underwriting income rose to $357 million in 2025 from $285 million in 2024, an increase of 25 per cent.
Premiums
Across all business units, direct premiums written totalled $25.1 billion in 2025, representing growth of 4 per cent in constant currency compared with $23.7 billion in 2024.
In Canada, direct premiums written reached $17.2 billion in 2025, up 7 per cent from $16 billion in 2024.
In more detail for 2025 compared with the previous year in the Canadian market, Intact reports premium growth of 11 per cent in personal auto, 9 per cent in personal property and 2 per cent in commercial lines. As was the case in 2024, the company notes heightened competition for large accounts.
Personal auto accounts for 43 per cent of the insurer’s premium volume in Canada, compared with 27 per cent for home insurance and 30 per cent for commercial insurance. Some 61 per cent of premium volume written in Canada comes from the broker distribution network and 14 per cent from brokerages affiliated with subsidiary BrokerLink.
Combined ratio
For the full 2025 fiscal year, the combined ratio stood at 88.2 per cent, compared with 92.2 per cent in 2024, a difference of 4 percentage points.
In more detail:
- In Canada, the combined ratio was 86.8 per cent for 2025, compared with 92.7 per cent in 2024, a notable improvement of 5.9 percentage points.
- In the United States, the combined ratio was 85.1 per cent in 2025, versus 87.5 per cent in 2024, an improvement of 2.4 points.
- In the UK and International segment, the combined ratio reached 94.8 per cent in 2025, compared with 92.8 per cent in 2024, a deterioration of 2 points.
The consolidated expense ratio stood at 34 per cent in 2025, compared with 33.7 per cent in 2024. CIBC analyst Paul Holden noted that the ratio remained stable despite significant premium growth in recent years.
Charles Brindamour acknowledged this, pointing out that the general expense ratio, at 14.6 per cent in 2025, was unchanged from 2024 and 2023. It was 14.2 per cent in 2022. Growth in direct distribution adds pressure on operating expenses, he explains, as does growth in specialty risks and commercial lines.
“That being said, we’ve given ourselves internally a number pretty steep performance improvement targets in terms of expenses and productivity in the next three years and I’m certainly hoping that this ratio is coming down,” Brindamour adds.
Catastrophe losses
Losses related to natural catastrophes totalled $844 million in 2025, down $695 million from $1.5 billion in 2024.
The catastrophe loss ratio stood at 3.7 per cent in 2025, compared with 7.1 per cent in 2024.
Following the disastrous year in 2024, the company increased its forecast for catastrophe losses from $900 million to $1.2 billion. That forecast remains unchanged, says Chief Financial Officer Ken Anderson. Some 75 per cent of that forecast relates to losses in Canada and 70 per cent of that amount is tied to personal property lines, including auto and home, he adds during the analyst call.
The renewal of reinsurance treaties in January 2026 was favourable, according to Anderson. Catastrophe retention in Canada remained unchanged at $350 million, and the company improved its overall protection against multiple loss events. “Our approach to reinsurance remains unchanged. We use it to protect our balance sheet from tail risk,” he says.
Distribution income
Distribution income reached $546 million in 2025, up 4 per cent year over year. Growth from acquisitions and organic expansion, primarily through BrokerLink, drove the result. It was partially offset by slower growth at subsidiary On Side Restoration, the management report notes. On Side’s services were less in demand than in 2024 due to milder weather conditions.
BrokerLink achieved its goal of reaching $5 billion in premium volume in 2025, and the company is maintaining its target of $10 billion by the end of 2030. Ken Anderson reports that the 20 transactions completed in 2025 added approximately $570 million in volume to the subsidiary.
Anderson notes that a larger share of distribution now comes from managing general agents (MGAs), where the company intends to continue making acquisitions in North America. The management report states that 4 per cent of premium volume is now generated through MGAs.
In its management report, the company notes that 54 per cent of the premium volume of brokerages within the BrokerLink network is placed with other insurers. BrokerLink accounts for 47 per cent of distribution income, compared with 39 per cent for the Financial Distribution Strategies division, which includes investments in partner brokers and distribution agencies, primarily in Quebec.
On that point, “some of the brokers we support in consolidation are also very active,” Brindamour notes.
Capital deployment
Intact reports net investment income of $1.6 billion in 2025, up $73 million, or 5 per cent, from the previous year. In 2026, the company maintains its outlook for $1.6 billion in operating net investment income.
In 2025, the company carried out a normal course issuer bid and cancelled 732,339 common shares for total consideration of $198 million. The common shareholder dividend has delivered a compound annual growth rate of 10 per cent over the past decade, the management report states.
During the analyst call, several questions focused on the company’s plans to enhance shareholder value. Total capital margin stood at $3.7 billion as at December 31, 2025, compared with $2.9 billion a year earlier.
Despite several consecutive quarters of strong results, shareholders have not shown greater enthusiasm for the stock, notes Mario Mendonca of TD Securities. Charles Brindamour says the topic is regularly discussed at the company’s board of directors.
The president and chief operating officer ruled out no options for deploying excess capital. There will be additional share buybacks, continued dividend growth and ongoing mergers and acquisitions.
“I do think Intact as a firm has a range of opportunities to deploy capital inorganically, that is unmatched compared to what we’re being compared against in the Canadian landscape. Our footprint is 10 times what it was, and we largely outperform everywhere,” Brindamour says.
2026 outlook
The company estimates that industry-wide premium growth in personal lines will range between 7 and 13 per cent in 2026. Profitability will remain challenging in auto insurance in 2026, particularly in Alberta, where reforms are expected on January 1, 2027, Brindamour notes.
The management report nevertheless highlights that the loss ratio and combined ratio in Canadian personal auto both declined by 2 points in 2025. More than half of that improvement stemmed from lower catastrophe losses.
In commercial lines, industry premium growth is expected to range from 1 to 5 per cent, according to Intact. “Geopolitical conditions and elevated competition in large accounts may weigh on industry growth,” the company states in its management report.
New leadership at Intact Insurance in Canada
Shortly beforehand, the company announced changes at Intact Insurance. Executive Vice-President and President of Intact Insurance in Canada Anne Fortin announced she will retire on March 31. She had held the role for two years. Her departure was acknowledged by Louis Gagnon, who leads IFC’s Canadian division, in the announcement made on February 4.
The following day, IFC announced the appointment of Fortin’s successor. Peter Janzen will take on the role. He joined the company following the acquisition of RSA in 2021 and currently serves as Senior Vice-President for the Ontario division and national distribution teams.
