Q2 2024 Intact Financial Corp Earnings Call Transcript
Key Points
- Net operating income per share doubled to $4.86, driven by strong underwriting performance and growth in distribution and investment income.
- Combined ratio improved significantly to 87.1%, reflecting a 2-point improvement in underlying performance.
- Operating ROE increased to 17%, up 4 points year-over-year.
- Premium growth in personal auto and personal property was strong at 11% and 9%, respectively.
- The UK & Ireland business saw a 42% premium growth, mainly due to the direct line transaction, with a healthy combined ratio of 92.2%.
- Increased competition in commercial lines, particularly for large accounts, led to only 1% premium growth in this segment.
- Catastrophe losses, although lower than last year, still totaled $96 million in Q2 and $193 million for the first half of 2024.
- The US business saw only 1% premium growth, with corrective actions needed in underperforming segments like entertainment and financial lines.
- The Alberta market remains challenging due to an artificial cap on rates, impacting growth potential in this region.
- Integration of the recently acquired direct line business in the UK is progressing cautiously, which may temporarily drag on near-term performance.
Good morning, ladies and gentlemen, and welcome to the Intact Financial Corporation Q2 2024 results conference call. (Operator Instructions) This call is being recorded on July 31, 2024. I would now like to turn the conference over to Kevin Lemay, Deputy Senior Vice President and Head of Financial Performance. Please go ahead.
Thank you, Julie. Good morning, everyone, and thank you for joining the call to discuss our second quarter financial results. The link to our live webcast and materials for this call have been posted on our website at intactfc.com under the investor tab.
Before we start, please refer to slide 2 for a disclaimer regarding the use of forward-looking statements, which form part of this morning's remarks. And slide 3 for a note on our two new use of non-GAAP financial measures and other terms used in this presentation.
To discuss our results to date I have with me our CEO, Charles Brindamour; our CFO, Louis Marcotte
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