Intact Financial Corporation, the parent company of RSA, reported a 3% increase in operating direct premiums written (DPW) in the first quarter of 2025. The growth was primarily supported by its personal lines business. Despite higher catastrophe losses, the company’s combined ratio remained stable at 91.3%, thanks to stronger underlying performance.
Net operating income attributable to common shareholders rose 11% year-over-year to CA$717 million, driven by gains in both underwriting and investment activities. Earnings per share were CA$3.69, relatively flat compared to the previous year. Book value per share grew 13% year-over-year to CA$96.16, reflecting strong earnings and favorable market movements. Operating return on equity increased to 16.5%, up from 14.3% in the same period last year.
Segment results were mixed across different regions. In Canada, operating DPW increased 7% to CA$3.48 billion, supported by rate adjustments and modest unit growth in personal auto and property lines. The commercial lines segment remained stable with low single-digit premium increases and a combined ratio of 81.2%, benefiting from favorable prior-year development.
In the US, operating DPW declined 3%, mainly due to the non-renewal of a large account. However, the region’s combined ratio improved slightly to 86.8%, helped by rate momentum across most lines. In the UK and Ireland, operating DPW fell 4% as the company continued its portfolio remediation efforts. The combined ratio in this segment rose to 97.6%, influenced by elevated weather-related losses.
Investment and distribution income contributed positively to the overall performance. Operating net investment income rose 9% to CA$415 million, while distribution income increased 17% to CA$117 million, driven by growth in BrokerLink and M&A activity.
Intact Financial ended the quarter with a capital margin of CA$3.1 billion and an adjusted debt-to-total capital ratio of 19.1%. The board of directors approved a quarterly dividend of CA$1.33 per common share, payable on June 30, 2025, to shareholders of record on June 16, 2025.
The company expects current insurance market trends to continue, particularly in catastrophe-exposed areas, and is projecting low double-digit premium growth in personal lines and mid-single-digit growth in commercial and specialty segments over the next year.
