RSA acquisition propels Intact’s growth in Canada

Intact Financial Corporation has just announced its results for the second quarter of 2022. These show a 107% increase in net profit, which reached 1.184 billion dollars, against 573 million a year earlier. The company explains this success by the significant increase in its value attributable to the acquisition of RSA Insurance Groupas well as its good investment and underwriting results.

The Company’s Board of Directors also approved a quarterly dividend of $1.00 per share, to be paid on September 31 to shareholders of record on September 15, 2022. Preferred stock dividends range from $0.21 at nearly $0.34 per share.

Speaking of its expectations for the next 12 months, the company says it expects the market to continue to oscillate between stability and difficulty in most business sectors. β€œIn Canada, we believe the stability of the property insurance market will continue. Growth in personal auto insurance premiums is expected to move towards the mid-range, to single digits that reflect inflation and changing driving habits. On the commercial side, both in the United States and in Canada, market conditions should remain difficult,” said the insurer.

In Canada, original premiums written increased by 33%, from $3.051 billion to $4.047 billion. Personal auto insurance premiums increased 28%, driven by the RSA acquisition and organic growth of 1%. Personal property insurance premiums also increased by 28%, thanks to the acquisition of RSA and organic growth of 6%. Finally, commercial insurance premiums increased by 42%, thanks to RSA and organic growth of 7% supported by a tough market.

Regarding its Canadian operations, the company reports that premium growth of 33% in the second quarter of 2022 and 34% in the first half of 2022 is attributable to the acquisition of RSA and the relief measures granted to the first half of 2021. Excluding these items, growth was 5% driven by rate increases across all lines of business, led by continued growth in commercial insurance .

Regarding the RSA acquisition, the company states that integration activities are continuing; conversion of policies by the broker network remains a top priority.

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