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Highlights

  • IFC’s net income saw a 73.6% YoY increase in FY24 to CAD 2,310 million, up from CAD 1,331 million in FY23
  • The company raised its quarterly dividend by CAD 0.12, bringing the total to CAD 1.33 per common share, marking a 10-year compounded annual growth rate of 10%
  • The company has provided positive guidance for its net investment income in FY25, projecting an increase to approximately CAD 1.6 billion

Intact Financial Corporation (TSX:IFC) provides Property and Casualty (P&C) insurance in Canada. It is a prominent specialty lines insurer with international expertise and a leader in commercial lines in the UK and Ireland.

For the fiscal year 2024 (FY24), IFC’s insurance revenue increased by 4.0% YoY, from CAD 25,507 million in FY23 to CAD 26,523 million in FY24. This growth was primarily driven by higher underwriting in both personal and commercial lines in North America. Operating net investment income also saw a notable boost, climbing 15.8% YoY to CAD 1,559 million, compared to CAD 1,346 million in the previous year. This increase was largely attributed to higher reinvestment yields, particularly those realized in 2023.

The company's net income before income taxes surged by 59.5% YoY, reaching CAD 2,878 million in FY24, compared to CAD 1,804 million in FY23. This rise was largely due to elevated net investment returns. Furthermore, net income saw a 73.6% YoY increase, totaling CAD 2,310 million for FY24, up from CAD 1,331 million in the prior year.

Recent Business Update

On February 11, 2025, IFC announced two significant business updates. Firstly, the company increased its quarterly dividend by CAD 0.12, bringing the total to CAD 1.33 per common share, marking a 10-year compounded annual growth rate of 10%. Additionally, IFC reported a 13% rise in its book value per share, from the previous year to CAD 92.67.

Company Outlook

The company has outlined its growth and profitability objectives for Canada, setting a target to increase its operating Direct Premiums Written (DPW) to CAD 20 billion by 2027.  Additionally, the company has provided positive FY25 guidance for its net investment income, projecting an increase to approximately CAD 1.6 billion.

Top 10 Shareholders

The top 10 shareholders of IFC collectively own approximately 31.49% of the company's total shares. Among them, Caisse de Depot et Placement du Quebec holds the largest stake at around 8.74%, while The Vanguard Group, Inc. holds about 3.21%.

Stock Information

The stock has experienced a decline of approximately 3.03% over the past week but has gained around 7.89% over the last month. Additionally, the stock is currently trading above the average of its 52-week high of CAD 294.345 and its 52-week low of CAD 216.62.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 24, 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.