Intact Financial Corporation released its second quarter 2022 financial results, showing a 107 per cent increase in net income to $1.184-billion, up from $573-million in the second quarter of 2021. The company attributes the success to meaningful accretion from the acquisition of RSA Insurance Group plc, along with strong investment and underwriting results.
The company’s board of directors also approved a quarterly dividend of $1.00 per share, payable on September 31 to shareholders of record as of September 15, 2022. Preferred share dividends range from $0.21 to almost $0.34 per share.
In discussing its outlook for the coming 12 months, the company says it expects firm-to-hard insurance market conditions to continue in most lines of business. “In Canada, we expect firm market conditions to continue in personal property. Personal auto premium growth is expected to progress towards the mid-single-digit range to reflect inflation and evolving driving patterns. In commercial lines, in both the United States and Canada, hard market conditions are expected to continue,” the insurer states.
In Canada, operating direct premiums written increased 33 per cent, to $4.047-billion, up from $3.051-billion. Personal auto premiums grew by 28 per cent, driven by the RSA acquisition and one per cent organic growth. Personal property premiums also grew 28 per cent driven by RSA and six per cent organic growth, and commercial lines premium growth was 42 per cent driven by RSA and organic growth of seven per cent, supported by hard market conditions.
In its Canadian business, the company says “premium growth of 33 per cent for Q2-2022 and 34 per cent in H1-2022 (first half of the year), reflected the impact of the RSA acquisition and relief provided in H1-2021. Excluding these, growth was five per cent, driven by rate increases across all lines of business, led by continued strength in commercial lines,” says Intact.
Regarding the RSA acquisition, the company says integration activities continue to progress; policy conversion in the broker channel remains a top priority.