Intact Financial Corporation reports Q4-2025 results
(in Canadian dollars except as otherwise noted)
TORONTO, Feb. 10, 2026 /CNW/ - (TSX: IFC)
Highlights
- Net operating income per share1 was up 12% to $5.50 (EPS of $5.24), driven by strong underwriting performance
- Combined ratio1 of 85.9%, reflecting robust performance across all geographies
- Operating DPW1 growth was 4%, driven by continued strength in Personal lines, while our actions in Commercial lines are gaining traction
- BVPS1 increased 16% year-over-year and 4% sequentially to $107.35, with an operating ROE of 19.5% (ROE of 18.4%)
- Balance sheet remains strong, and is well-positioned to capture growth opportunities, with total capital margin1 of $3.7 billion and an adjusted debt-to-total capital ratio1 of 16.5%
- Quarterly dividend increased by $0.14 (11%) to $1.47 per common share, maintaining a 10-year compounded annual growth rate of 10%
Charles Brindamour, Chief Executive Officer, said:
"We ended 2025 in a position of strength, after delivering our highest ever annual NOIPS, an outstanding operating ROE, and strong results across the business. Last year, we achieved several important milestones including uniting our global operations under the Intact Insurance brand, and were recognized as a Best Employer in Canada, the US, the UK and Ireland. Heading into 2026, I am very pleased with how our teams are executing on our growth strategies, by expanding our distribution channels and product shelf, as well as deploying value-added technology to brokers. The competitive environment continues to be constructive and plays to our strengths. We are well positioned to achieve our objectives of 500 basis points of ROE outperformance and 10% annual NOIPS growth over the next decade. The strength of our performance and outlook enables us to increase dividends to common shareholders for the 21st consecutive year."
12-Month Industry Outlook
We continue to expect constructive conditions across all our markets:
- In Personal lines in Canada, we expect industry premium growth to be in the high-single-digit to low-double-digit range; and
- In Commercial and Specialty lines overall, we expect industry premium growth to be in the low to mid-single-digit range.
Q4-2025 Consolidated Performance
- Operating DPW growth was 4%, driven by continued strength in Personal lines, with growth initiatives in Commercial lines gaining traction.
- Combined ratio was strong at 85.9%, reflecting robust performance across all geographies, including improvements in our underlying results.
- Operating net investment income increased 4% from last year to $415 million, due to higher assets, as well as special distributions.
- Distribution income of $117 million decreased from last year, with lower contributions from On Side due to milder weather conditions.
- Net operating income per share was strong at $5.50 (EPS of $5.24), increasing 12% year-over-year, reflecting 6% year-over-year growth in operating net underwriting revenue and improved underwriting margins.
- Operating ROE increased 3 points from last year to 19.5% (ROE of 18.4%), driven by strong margins, as well as lower-than-expected catastrophe losses over the last 12 months.
Segment Underwriting Performance
Canada
- The Canadian business is in a strong position, outperforming the industry on both DPW growth and combined ratio as at Q3 YTD-2025.
- Personal auto operating DPW grew by 9%, supported by continued strength in unit growth of 2%. The combined ratio of 94.2% reflected strong underlying performance in the quarter despite adverse winter conditions.
- Personal property operating DPW grew by 6% despite almost 3 points of adverse one-time items in the affinity and travel businesses. Unit growth continued to be strong at 2% in the quarter. The combined ratio was very strong at 76.4%, reflecting our continued underwriting discipline, as well as lower catastrophe losses.
- Commercial lines operating DPW growth was 1%, reflecting our growth initiatives gaining traction with solid new business and retention, largely offset by continued competition in large accounts. The combined ratio was very strong at 77.1%, reflecting our strong underlying performance.
UK&I
- Operating DPW decreased by 2%, reflecting remediation actions and competition in large accounts. Growth improved sequentially, driven by new business. The combined ratio was 93.5% as improvements in DLG's underlying performance were primarily offset by higher large losses in Specialty lines.
US
- Operating DPW growth was 5% in the quarter, as our growth initiatives led to strong new business. The combined ratio of 82.8% was very strong, improving 3 points year-over-year, reflecting the benefits of our disciplined underwriting and pricing sophistication.
Balance Sheet
- The Company ended the quarter in a strong financial position and with solid regulatory capital ratios in all jurisdictions. Total capital margin increased from last quarter to $3.7 billion, driven by strong capital generation.
- Adjusted debt-to-total capital ratio stood at 16.5% as at December 31, 2025, a decrease compared to Q3-2025, reflecting strong earnings, as well as the repayment of debt in the quarter.
- IFC's book value per share (BVPS) of $107.35 as at December 31, 2025 increased 4% sequentially, and 16% year-over-year, primarily due to robust earnings over the last 12 months.
Common Share Dividend
- The Board of Directors approved the quarterly dividend of $1.47 per share on the Company's outstanding common shares. The common share dividends are payable on March 31, 2026, to shareholders of record on March 17, 2026. This represents a $0.14 increase and marks the 21st consecutive annual increase in our common share dividend since our IPO in 2004.
Preferred Share Dividends
- The Board of Directors also approved a quarterly dividend of 30.25625 cents per share on the Company's Class A Series 1 preferred shares, 21.60625 cents per share on the Class A Series 3 preferred shares, 32.5 cents per share on the Class A Series 5 preferred shares, 33.125 cents per share on the Class A Series 6 preferred shares, 37.575 cents per share on the Class A Series 7 preferred shares, 33.75 cents per share on the Class A Series 9 preferred shares, and 32.8125 cents per share on the Class A Series 11 preferred shares. The dividends are payable on March 31, 2026, to shareholders of record on March 17, 2026.
- On November 12, 2025, we completed the issuance of 6,000,000 Class A Series 13 offering (the Series 13 Preferred Shares), at a price of $25.00 per share, for aggregate gross proceeds of $150 million. The holders are entitled to receive fixed quarterly non-cumulative preferential cash dividends each year, at an annual rate equal to $1.375 per share. The first dividend will be payable on March 31, 2026.
Normal Course Issuer Bid
- In 2025, the Company has repurchased and cancelled 732,339 common shares for a total consideration of $198 million, under its normal course issued bid ("NCIB") program.
- Subsequent to year end, the Board has authorized, subject to TSX approval, the renewal of the NCIB to repurchase for cancellation up to 3% of the Company's issued and outstanding common shares over the subsequent 12-month period, commencing February 17, 2026.
Analysts' Estimates
- The average estimate of earnings per share and net operating income per share for the quarter among the analysts who follow the Company was $4.48 and $4.70, respectively.
Management's Discussion and Analysis (MD&A) and Consolidated Financial Statements
This Press Release, which was approved by the Company's Board of Directors on the Audit Committee's recommendation, should be read in conjunction with the Q4-2025 MD&A, as well as the Q4-2025 Consolidated financial statements, which are available on the Company's website at www.intactfc.com and later today on SEDAR+ at www.sedarplus.ca.
For the definitions of measures and other insurance-related terms used in this Press Release, please refer to the MD&A and to the glossary available in the "Investors" section of the Company's website at www.intactfc.com.
Conference Call Details
Intact Financial Corporation will host a conference call to review its earnings results tomorrow at 11:00 a.m. ET. To listen to the call via live audio webcast and to view the Company's Consolidated financial statements, MD&A, presentation slides, Supplementary financial information and other information not included in this Press Release, visit the Company's website at www.intactfc.com and link to "Investors". The conference call is also available by dialing 416-945-7677 or 1-888-699-1199 (toll-free in North America). Please call 10 minutes before the start of the call. A replay of the call will be available on February 11, 2026 at 2:00 p.m. ET until 11:59 p.m. ET on February 18, 2026. To listen to the replay, call 289-819-1450 or 1-888-660-6345 (toll-free in North America), entry code 38957. A transcript of the call will also be made available on Intact Financial Corporation's website.
About Intact Financial Corporation
Intact Financial Corporation (TSX: IFC) is a global provider of property and casualty insurance founded on core values and a belief that insurance is about people, not things. Intact's success is fueled by its 32,000 employees worldwide who embody the company's purpose: to help people, businesses and society prosper in good times and be resilient in bad times. To achieve its ambitions, Intact seeks to ensure customers are its advocates, its people are engaged, and the company is one of the most respected.
Intact is the largest provider of property and casualty insurance in Canada and has successfully exported its strengths across North America, the UK, and Europe. Its growing commercial and specialty solutions network now spans over 150 countries. With a customer-driven mindset, Intact has expanded its operations to include insurance distribution, restoration, and prevention.
Intact solidifies its outperformance by leveraging its competitive advantages: global leadership in data and AI for pricing and risk selection; deep claims expertise and integrated supply chain network; and strong capital and investment management. Intact's total annual operating Direct Premiums Written has tripled over the last decade to $25 billion.
