(TSX: IFC)
(in Canadian dollars except as otherwise noted)

TORONTO, July 28, 2026 /CNW/ -- Highlights

• Operating DPW¹ growth was 4%, mostly attributable to continued strength in Personal lines
• Combined ratio¹ of 94.9% included 4 points from elevated catastrophe and large losses
• Net operating income per share¹ of $3.17 (EPS of $3.90) reflected lower underwriting income, but solid contributions from investment and distribution income
• BVPS¹ of $111.73 grew 13% year-over-year, with operating ROE¹ remaining strong at 17.0% (ROE of 17.2%)
• Balance sheet strength maintained with a total capital margin¹ of $3.8 billion and an adjusted debt-to-capital¹ of 16.2%, after completing $181 million of share buybacks in the quarter

Charles Brindamour, Chief Executive Officer, said:

"We continued to deliver an upper teens ROE and double-digit BVPS growth over the past year driven by robust underwriting fundamentals, despite elevated CAT and large losses in the second quarter. These events allow our teams to continue to demonstrate their strength on the ground, leveraging our scale and extensive supply chain to help customers get back on track fast and rebuild stronger. Our resilient performance, as well as the strength of our balance sheet, positions us to continue to pursue growth initiatives in a constructive M&A environment. We remain on track to deliver on our financial objectives of exceeding the industry ROE by 500 basis points and grow NOIPS by 10% annually over time."

12-Month Industry Outlook

We continue to expect constructive conditions across all of 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.

Q2-2026 Consolidated Performance

• Operating DPW growth was solid at 4%, mostly attributable to continued strength and hard market conditions in Personal lines. The benefits we see from our initiatives in Commercial and Specialty lines are somewhat tempered by competition in large accounts.
• Combined ratio of 94.9% included 4 points from elevated catastrophe and large losses, with otherwise solid underlying performance.
• Operating net investment income increased 1% to $405 million, reflecting higher assets year-over-year, despite decreases in floating rates.
• Distribution income of $172 million increased year-over-year as strong organic and inorganic growth was tempered by investments to support temporary service level demands, including those in connection with auto reforms.
• Net operating income per share of $3.17 included a $1.08 impact from elevated catastrophe and large losses above expectations but reflected solid contributions from investment and distribution income.
• Operating ROE increased almost 1 point year-over-year to 17.0%, reflecting the resilience of our underwriting platform and continued focus on profitable growth.
• Adjusted ROE of 19.3% and ROE of 17.2% were strong, both increasing approximately 3 points from last year, primarily due to solid operating performance as well as mark-to-market gains on equity securities.

Segment Underwriting Performance

Canada

• Personal auto operating DPW grew by 9%, including unit growth of 1% in hard market conditions. The combined ratio was strong at 88.8% reflecting the benefits of our disciplined profitability actions taken over time.
• Personal property operating DPW growth was 7%, including unit growth of 1% in hard market conditions. The combined ratio of 103.0% was impacted by 11 points of catastrophe and large losses above expectations.
• Commercial lines operating DPW growth was 1%, as positive momentum from our growth initiatives was tempered by continued competition in large accounts. The combined ratio of 85.7% was strong, reflecting robust underwriting performance despite elevated large losses and lower favourable PYD.

UK&I

• Operating DPW growth decreased by 1% as solid new business and retention were more than offset by the impacts of combining the RSA and DLG brokered Commercial lines portfolios under one brand. The combined ratio of 112.0% increased year-over-year and included a 15-point impact from elevated catastrophe and large losses.

US

• Operating DPW growth was 4%, driven by solid new business, somewhat tempered by elevated competition in specific business lines. The combined ratio of 85.0% was strong and improved almost 3 points year-over-year, reflecting the benefits of our disciplined underwriting and focus on growing in the most profitable segments.

Balance Sheet

• The Company ended the quarter in a strong financial position and with solid regulatory capital ratios in all jurisdictions. Total capital margin remained strong at $3.8 billion but decreased $0.2 billion sequentially. Capital generation was solid and supported capital deployment activities including dividend distributions and share buybacks.
• The adjusted debt-to-total capital ratio decreased to 16.2% as at June 30, 2026, driven by growth in shareholders' equity from continued profitability.
• IFC's book value per share (BVPS) of $111.73 increased 3% sequentially and 13% year-over-year, driven by solid operating earnings despite elevated catastrophe and large losses as well as share buybacks.

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 September 29, 2026, to shareholders of record on September 15, 2026.

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, 32.8125 cents per share on the Class A Series 11 preferred shares, and 34.375 cents per share on the Class A Series 13 preferred shares. The dividends are payable on September 30, 2026, to shareholders of record on September 15, 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 $3.19 and $3.51, 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 Q2-2026 MD&A, as well as the Q2-2026 interim condensed 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 interim condensed 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 July 29, 2026, at 2:00 p.m. ET until 11:59 p.m. ET on August 5, 2026. To listen to the replay, call 289-819-1450 or 1-888-660-6345 (toll-free in North America), passcode 27444. 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.

Non-GAAP and other financial measures 

Non-GAAP financial measures and Non-GAAP ratios (which are calculated using Non-GAAP financial measures) do not have standardized meanings prescribed by IFRS (or GAAP) and may not be comparable to similar measures used by other companies in our industry. Non-GAAP and other financial measures are used by management and financial analysts to assess our performance. Further, they provide users with an enhanced understanding of our financial results and related trends, and increase transparency and clarity into the core results of the business.

Non-GAAP financial measures and Non-GAAP ratios used in this Press Release and other Company's financial reports include measures related to our consolidated performance, underwriting performance and financial strength.

For more information about these supplementary financial measures, Non-GAAP financial measures, and Non-GAAP ratios, including definitions and explanations of how these measures provide useful information, refer to Section 16 – Non-GAAP and other financial measures in the Q2-2026 MD&A dated July 28, 2026, which is available on our website at www.intactfc.com and on SEDAR+ at www.sedarplus.ca.

Table 1 Reconciliation of NOI, NOIPS and OROE to Net income attributable to shareholders

Table 2 Reconciliation of underwriting results on a MD&A basis with the interim condensed consolidated financial statements (quarterly)

Reconciling items in the table above:

Table 3 Reconciliation of underwriting results on a MD&A basis with the interim condensed consolidated financial statements (for the year)

Reconciling items in the table above:

Table 4 Reconciliation of ROE to Net income attributable to shareholders

Table 5 Reconciliation of consolidated results on a MD&A basis with the interim condensed consolidated financial statements (quarterly)

Table 6 Reconciliation of consolidated results on a MD&A basis with the interim condensed consolidated financial statements (for the year)

Table 7 Reconciliation of AEPS and AROE to Net income attributable to shareholders

Table 8 Calculation of BVPS and BVPS (excluding AOCI)

Table 9 Adjusted average common shareholders' equity and Adjusted average common shareholders' equity, excluding AOCI

Table 10 Reconciliation of Total debt outstanding before hybrid subordinated notes, Adjusted total capital and Total leverage ratio

Forward Looking Statements

Certain statements made in this news release are forward-looking statements. These statements include, without limitation, statements relating to the outlook for the Property and Casualty insurance industry in Canada, the U.S., the U.K. and Europe, the Company's business outlook, the Company's growth prospects and the impact of economic and other external conditions on the Company's operations and financial performance. All such forward-looking statements are made pursuant to the 'safe harbour' provisions of applicable Canadian securities laws.

Forward-looking statements, by their very nature, are subject to inherent risks and uncertainties and are based on several assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements as a result of various factors, including those discussed in the Q2-2026 MD&A dated July 28, 2026 and those made in the section entitled Risk management (Sections 24 to 27) of our MD&A for the year ended December 31, 2025. The Q2-2026 MD&A, dated July 28, 2026, and the MD&A for the year ended December 31, 2025 are available on SEDAR+ at www.sedarplus.ca. Please read the cautionary note at the beginning of the Q2-2026 MD&A in connection with the risks described in the MD&A for the year ended December 31, 2025. We cannot guarantee that any forward-looking statement will materialize and we caution you against relying on any of these forward-looking statements. Except as may be required by Canadian securities laws, we do not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise.

SOURCE Intact Financial Corporation