Intact Financial Corporation (IFC) AI Stock Analysis

• Market Cap: C$48.43B
• Dividend Yield: 1.91%
• Average Volume (3M): 423.25K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.47
• Revenue Growth: 5.25%
• EPS Growth: 15.06%
• Country: CA
• Employees: 31,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 5.23
• Shares Outstanding: 178,342,770
• 10 Day Avg. Volume: 482,282
• 30 Day Avg. Volume: 423,247
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$328.00
• Price Target Upside: 20.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 77 Outperform
• Price Target: C$327.00 ▲(20.41% Upside)

Intact Financial Corporation's overall stock score of 77 reflects its strong financial performance and positive earnings call insights. While technical indicators suggest caution, the company's robust balance sheet and strategic initiatives provide a solid foundation for future growth. The valuation is reasonable, and recent corporate events further support the company's positive outlook.

Positive Factors

Revenue Growth

The strong growth in personal auto and property premiums indicates robust demand and effective pricing strategies, supporting long-term revenue expansion.

Strategic Expansion

Expanding into new verticals and regions enhances market presence and diversifies revenue streams, positioning the company for sustained growth.

Balance Sheet Strength

A robust balance sheet with significant capital margin ensures financial stability and flexibility to invest in growth opportunities.

Negative Factors

Challenges in Commercial Lines

Limited growth in commercial lines due to competition could hinder revenue diversification and impact overall profitability if not addressed.

UK&I Premium Decline

Declining premiums in the UK&I region suggest market challenges that could affect international growth and profitability.

Catastrophe Losses Impact

Increased catastrophe losses can strain financial resources and impact underwriting profitability, posing a risk to future earnings stability.

Intact Financial Corporation Business Overview & Revenue Model

Company Description

Intact Financial Corporation, through its subsidiaries, provides property and casualty insurance products to individuals and businesses in Canada, the United States, the United Kingdom, Ireland, rest of Europe, and the Middle East. It offers personal auto insurance; insurance for motor homes, recreational vehicles, motorcycles, snowmobiles, and all-terrain vehicles; personal property insurance, such as protection for homes and contents from risks, including fire, theft, vandalism, water damage, and other damages, as well as personal liability coverage; and property coverage for tenants, condominium owners, non-owner occupied residences, and seasonal residences. The company also provides insurance products for commercial lines for a group of small and medium sized businesses; commercial property insurance for the protection of physical assets of the business; and liability coverages comprising commercial general, product, and professional liability, as well as cyber endorsement. In addition, it offers commercial vehicle insurance coverages for the protection for commercial auto, fleets, garage operations, light trucks, public vehicles, and the specific needs of the sharing economy. Further, the company provides various personal levels of coverage to customers for their home, motor, pet, and other insurance products; general insurance, specialty lines, and risk management solutions; specialty insurance products for various product and customer groups, including accident and health, technology, ocean and inland marine, public entities, and entertainment, as well as financial services and institutions; and various products to specialty property, surety, tuition reimbursement, management liability, cyber, and environmental institutions. The company was formerly known as ING Canada Inc. and changed its name to Intact Financial Corporation in 2009. Intact Financial Corporation was founded in 1809 and is based in Toronto, Canada.

How the Company Makes Money

Intact Financial Corporation generates its revenue primarily through the sale of insurance policies and the management of premiums collected from policyholders. The company's key revenue streams include personal insurance lines, such as automobile and property insurance, and commercial insurance products, which cover various industries and business needs. IFC also benefits from investment income earned on the premiums collected, which are invested in a diversified portfolio of assets. Strategic acquisitions and partnerships further enhance IFC's market position and revenue potential, enabling it to expand its product offerings and geographic reach.

Intact Financial Corporation Financial Statement Overview

Summary

Intact Financial Corporation demonstrates strong financial health with solid revenue growth, high profitability margins, and effective cash flow management. The balance sheet is stable with manageable leverage, and the company shows resilience in generating cash. While there are minor concerns regarding revenue fluctuations and debt levels, the overall financial position remains robust, supporting future growth prospects.

Income Statement

Intact Financial Corporation shows strong revenue growth with a 7.13% increase in TTM. The company maintains robust profitability with a net profit margin of 13.81% and an EBIT margin of 18.38% in TTM. The gross profit margin is exceptionally high, indicating efficient cost management. However, there is a slight decline in revenue compared to the previous year, which could be a concern if it continues.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.28 in TTM, indicating prudent leverage. The return on equity is strong at 13.08%, showcasing effective use of equity to generate profits. The equity ratio stands at a healthy level, supporting financial stability. However, the slight increase in debt over the years warrants monitoring.

Cash Flow

Cash flow analysis reveals a positive trend with a 7.14% growth in free cash flow in TTM, indicating strong cash generation capabilities. The free cash flow to net income ratio is high at 90.12%, suggesting efficient conversion of income into cash. However, the operating cash flow to net income ratio is low, which may indicate potential issues in cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.50B	23.74B	22.07B	19.67B	723.00M	12.46B
Gross Profit	19.53B	4.03B	22.09B	398.00M	570.00M	12.46B
EBITDA	3.98B	3.83B	2.40B	3.08B	3.03B	1.74B
Net Income	2.42B	2.30B	1.32B	2.45B	2.07B	1.08B
Balance Sheet
Total Assets	60.85B	59.53B	55.98B	53.74B	66.35B	35.12B
Cash, Cash Equivalents and Short-Term Investments	19.51B	18.90B	17.94B	23.85B	4.12B	2.47B
Total Debt	5.43B	5.47B	5.74B	5.28B	6.31B	3.49B
Total Liabilities	41.64B	41.38B	39.50B	37.61B	38.20B	25.54B
Stockholders Equity	19.22B	18.15B	16.19B	15.84B	15.67B	9.58B
Cash Flow
Free Cash Flow	3.51B	2.96B	1.39B	3.25B	2.80B	2.19B
Operating Cash Flow	3.90B	3.39B	1.85B	3.67B	3.13B	2.35B
Investing Cash Flow	-2.42B	-1.61B	-2.00B	-2.75B	-5.97B	-2.44B
Financing Cash Flow	-1.59B	-2.01B	321.00M	-2.21B	4.19B	79.00M

Intact Financial Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 271.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:IFC, the sentiment is Negative. The current price of 271.58 is below the 20-day moving average (MA) of 273.83, below the 50-day MA of 283.99, and below the 200-day MA of 282.76, indicating a bearish trend. The MACD of -3.69 indicates Positive momentum. The RSI at 41.91 is Neutral, neither overbought nor oversold. The STOCH value of 21.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:IFC.

Intact Financial Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FFH	80 Outperform	59.26B	8.45	16.10%	0.87%	16.79%	20.82%
IFC	77 Outperform	C$48.43B	20.81	13.23%	1.91%	5.25%	15.06%
DFY	76 Outperform	9.07B	21.99	10.32%	0.97%	18.98%	0.82%
IAG	75 Outperform	14.46B	14.47	12.86%	2.36%	-4.55%	42.41%
SLF	75 Outperform	46.68B	14.73	12.17%	4.14%	-0.61%	6.69%
GWO	72 Outperform	49.74B	13.44	13.06%	4.43%	15.27%	4.72%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Intact Financial Corporation Corporate Events

Intact Financial Corporation Achieves Strong Q2-2025 Results Amidst Challenging Conditions

Intact Financial Corporation reported a solid performance in Q2-2025, with a 4% growth in operating direct premiums written, driven by personal lines. The company achieved a strong combined ratio of 86.1% and an 8% increase in net operating income per share, reflecting robust underwriting and stable investment income. Despite higher catastrophe losses, Intact maintained a solid operating ROE of 16.3%, supported by a resilient balance sheet and strategic growth in personal lines. The company remains well-positioned to capture opportunities and continue delivering on its financial objectives, with expectations of favorable market conditions in the coming year.

The most recent analyst rating on (TSE:IFC) stock is a Buy with a C$275.00 price target. To see the full list of analyst forecasts on Intact Financial Corporation stock, see the TSE:IFC Stock Forecast page.

Intact Financial Completes $2.9 Billion Note Amendment

Intact Financial Corporation announced the successful completion of its consent and proxy solicitation regarding $2.9 billion of medium term notes. The company received the necessary consents to amend the indenture governing these notes, allowing for a proposed amendment to take effect. This move reflects Intact’s strategic financial management and could enhance its operational flexibility, potentially impacting stakeholders positively.

The most recent analyst rating on (TSE:IFC) stock is a Buy with a C$263.00 price target. To see the full list of analyst forecasts on Intact Financial Corporation stock, see the TSE:IFC Stock Forecast page.

Intact Financial Seeks Amendments to $2.9 Billion Medium-Term Notes

Intact Financial Corporation has initiated a consent and proxy solicitation to amend the indenture governing ten series of its Canadian dollar-denominated medium-term notes, totaling $2.9 billion in principal. The company seeks approval from noteholders for a proposed amendment, with a meeting scheduled if the required consent threshold is not met. This move could impact Intact’s financial operations and stakeholder relations, as it involves potential changes to the terms of significant debt instruments.

The most recent analyst rating on (TSE:IFC) stock is a Buy with a C$275.00 price target. To see the full list of analyst forecasts on Intact Financial Corporation stock, see the TSE:IFC Stock Forecast page.

Intact Financial Corporation Announces Shareholder Meeting Results

Intact Financial Corporation held its 2025 Annual Meeting of Shareholders virtually, where the election of directors, appointment of Ernst & Young LLP as auditor, and the approach to executive compensation were approved by shareholders. The results indicate strong support for the company’s leadership and strategic direction, which may reinforce its market position and stakeholder confidence.

Intact Financial Corporation Reports Strong Q1-2025 Results

Intact Financial Corporation reported a strong start to 2025, with a 3% growth in operating direct premiums written, driven by momentum in personal lines. The company maintained a stable combined ratio of 91.3% despite increased catastrophe losses, and achieved a 10% increase in net operating income per share to $4.01. The company’s operating return on equity stood at 16.5%, supported by solid underwriting results and increased investment and distribution income. Intact Financial is well-positioned to continue achieving its financial objectives amidst economic uncertainties, with expectations of continued premium growth in both personal and commercial lines.