Intact Financial Corporation hasreported its first financial results since the acquisition of RSA.

The insurer reported net income of $573 million (M$) in the second quarter of 2021, which include RSA’s results since June 1, 2021. Income thus climbed by 117.9 per cent or $310 million from Q2 2020, when Intact reported net income of $263 million, a record at the time.

Combined ratio improves 

Intact reported a combined ratio of 86.7 per cent in the second quarter of 2021, compared with 89.5 per cent in Q2 2020. The ratio improved by 2.8 points, despite “a 2-point impact” related to Intact’s premium relief measures earned during the quarter.

Looking at the results in closer detail, for all of the acquired RSA business, Intact reported a first-ever combined ratio of 90.7 per cent. It includes “4.1 points of catastrophe losses.” 

In Canada, Intact reported a combined ratio of 85 per cent. It improved by 4 points versus Q2 2020, “driven by strong underlying performance across all lines.” For example, the combined ratio improved by 2.3 points in personal auto, 5.3 points in personal property, reflecting “lower catastrophe losses and higher favourable prior year claims development,” and 5.5 points in commercial lines “driven by strong favourable prior year claims development.” 

In the U.S., the combined ratio was 90.3 per cent. It improved by 2.9 points compared with the second quarter of 2020 driven by “mild weather conditions,” Intact stated.

Operating income  

Intact’s net operating income was $515 million in the second quarter of 2021, up from $350 million in Q2 2020. This amounts to an increase of 47.1 per cent or $165 million, reflecting “strong growth in underwriting income and distribution and other income.” 

Net underwriting income  

Net underwriting income reached $464 million, versus $284 million in the second quarter of 2020, for an increase of 63.4 per cent or $180 million.

More specifically, RSA’s arrival increased net underwriting income by approximately $57 million between June 1, 2021, the closing date of the acquisition, and June 30, the end of the second quarter.

In Canada, net underwriting income was $374 million, up from $257 million in Q2 2020. The corresponding increase is 45.5 per cent or $117 million.

In the U.S., net underwriting income was $37 million, compared with $26 million in the second quarter of 2020. This represents an increase of 42.3 per cent or $11 million. Corporate and Other reported a net underwriting loss of $4 million, versus net underwriting income of $1 million in Q2 2020, for a decrease of $3 million.


Across all of its businesses, Intact reports direct premiums writtenof $4.3 billion in the second quarter of 2021, up from $3.4 billion in the second quarter of 2020.

These premiums grew by 27 per cent or $915 million, Intact says, “bolstered by the RSA acquisition and strength in Commercial Lines in both Canada and the U.S.”

The insurer adds that “in June 2021, RSA contributed $734 million of written premiums.”

In the United States, premiums were $512 million, up 5.3 per cent or $26 million.

In Canada, premiums climbed to $3 billion, compared with $2.9 billion in Q2 2020. The result represents an increase of 5.3 per cent or $155 million. In detail, we see that Canadian premiums rose by:

  • 0.7 per cent or $9 million in personal auto insurance, to $1.2 billion, “mainly reflecting the current muted rate environment,” Intact says;
  • 4.9 per cent or $37 million in personal property insurance, to $790 million. This increase “was driven by firm market conditions”;
  • 12.1 per cent or $109 million in commercial insurance, reaching $1 billion. This increase “mainly reflected hard market conditions.”


Intact reports net investment income of $154 million in the second quarter of 2021, compared with $141 million in Q2 2020. The increase is 9.2 per cent or $13 million “mainly due to the RSA acquisition," Intact says.

“Excluding the impact of RSA, net investment income was flat, driven by the impact of lower reinvestment yields and a weaker U.S. dollar, partly offset by the benefit of higher invested assets,” Intact adds.

Future quarters  

For the first and only time, RSA’s results were presented separately, alongside Intact’s usual results.

“Effective in Q3-2021, RSA’s underwriting results will be reported as part of the Canada (personal auto, personal property and commercial lines) and UK&I (personal lines and commercial lines) segments. The new UK&I segment will include RSA’s operations in the U.K., Ireland, Continental Europe and Middle East,” the insurer says.