Intact Financial Corporation reported a 4% rise in operating direct premiums written (DPW) for the second quarter of 2025, largely due to increased activity in personal lines.
The insurer delivered a combined ratio of 86.1%, alongside solid results in its investment and distribution segments.
Net operating income attributable to common shareholders reached $935 million. Net operating income per share came in at $5.23, while earnings per share increased 16% year-over-year to $4.70, exceeding analyst estimates. Book value per share stood at $98.67, representing a 12% increase over the past year. The company posted an operating return on equity of 16.3%, with an adjusted ROE of 16.5%.
In Canada, personal auto DPW rose 11%, driven by rate increases and a 2% gain in policy volume. Personal property DPW was up 10%, supported by similar market conditions. The combined ratio for personal auto was 90.3%, while personal property recorded 84.5%, rising 6.5 points from the previous year due to less favourable weather conditions.
Commercial lines in Canada recorded a 1% increase in DPW. The combined ratio improved to 74.0%, helped by underwriting actions and favourable prior-year development.
In the UK and Ireland, DPW declined by 5%, driven by portfolio remediation and exits from certain delegated relationships. Excluding these changes, the region saw 3% growth. The combined ratio in this segment was 92.9%.
The US segment remained flat, affected by a 3-point drag from a single business line. Rates were stable, and the combined ratio stood at 87.8%.
Operating net investment income increased 3% to $400 million, supported by higher yields and currency movements. Distribution income totalled $165 million, with activity driven by BrokerLink’s mergers and acquisitions, though tempered by slower performance elsewhere.
Intact reported a total capital margin of $3.1 billion and lowered its adjusted debt-to-total capital ratio to 18.4%, partly due to commercial paper repayments. Dividends were approved at $1.33 per common share, payable September 29, 2025, with several preferred share dividends also declared.
The company anticipates premium growth in the high single to low double digits in personal lines and mid-single digits in commercial and specialty segments over the next 12 months.
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