Scotiabank analyst Phil Hardie has raised the target price for shares of Intact Financial (IFCZF, Financial) to C$298, up from the previous target of C$295. This adjustment comes as Hardie continues to express confidence in the company's prospects by maintaining an Outperform rating on the stock.
The increase suggests a positive outlook for Intact Financial, reflecting the analyst's expectations for continued strong performance and potential growth in the company's valuation. Intact Financial is closely watched by investors, and this updated price target may influence market perceptions and investment strategies regarding its shares.
IFCZF Key Business Developments
Release Date: February 12, 2025
- Net Operating Income Per Share (NOIPS): $4.93 in Q4 2024, up 23% from last year.
- Combined Ratio: 86.5% in Q4, 4 points better than last year.
- Operating Return on Equity (ROE): 16.5% for 2024.
- Total Capital Margin: $2.9 billion at year-end.
- Catastrophe Losses: $1.5 billion for the year.
- Dividend Increase: 10% increase, marking the 20th consecutive year.
- Personal Auto Premium Growth: 12% in Q4.
- Personal Property Premium Growth: 9% in Q4.
- Commercial Lines Premium Growth: 4% in Q4.
- UK&I Combined Ratio: 92.7% for Q4 and 92.8% for the year.
- US Combined Ratio: 86.1% for Q4 and 87.5% for the year.
- Distribution Income Growth: 13% in Q4 and 12% for the year.
- Book Value Per Share Growth: 2% in Q4 and 13% year over year.
- Adjusted Debt-to-Total Capital: 19.4% at year-end.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Intact Financial Corp (IFCZF, Financial) reported its best quarter on record with a net operating income per share of $4.93, up 23% from the previous year.
- The company achieved a strong combined ratio of 86.5%, which is 4 points better than last year, indicating strong underlying performance across all lines of business.
- Intact Financial Corp (IFCZF) increased its dividend for the 20th consecutive year, with a 10-year compounded annual growth rate of 10%.
- The company has a robust capital margin of $2.9 billion, positioning it well for future growth opportunities.
- Intact Financial Corp (IFCZF) is advancing its AI capabilities, with over 500 models to optimize underwriting performance and customer experience, contributing to $150 million in run rate underwriting profit.
Negative Points
- The company incurred $1.5 billion in catastrophe losses for the year, reflecting ongoing challenges with severe weather events.
- In the US, premium growth was flat in the quarter due to corrective actions in underperforming segments, indicating potential challenges in maintaining growth.
- The integration of Direct Line in the UK&I created a 4-point drag on growth in Q4, highlighting challenges in integrating acquisitions.
- The Alberta auto insurance market remains challenging due to increased litigation on injury claims, impacting profitability despite recent regulatory changes.
- Intact Financial Corp (IFCZF) increased its retention of catastrophe treaty in Canada from $250 million to $350 million, indicating higher exposure to potential losses.