Intact Financial Corporation (IFC) AI Stock Analysis

• Market Cap: C$47.29B
• Dividend Yield: 1.86%
• Average Volume (3M): 447.13K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.47
• Revenue Growth: 2.51%
• EPS Growth: 44.44%
• Country: CA
• Employees: 31,000
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 4.46
• Shares Outstanding: 178,342,770
• 10 Day Avg. Volume: 410,697
• 30 Day Avg. Volume: 447,135
• PEG Ratio: 0.26
• Price to Book (P/B): 2.57
• Price to Sales (P/S): 1.97
• P/FCF Ratio: 15.78
• 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$318.43
• Price Target Upside: 13.66% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: C$301.00 ▲(7.43% Upside)

Intact Financial Corporation's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. While technical indicators suggest some short-term weakness, the company's robust financial health and strategic initiatives support a positive outlook. Valuation metrics indicate the stock is fairly valued, providing a balanced risk-reward profile.

Positive Factors

Revenue Growth

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

ROE Improvement

The significant improvement in ROE reflects efficient capital utilization and strong profitability, enhancing shareholder value over time.

AI Investments

AI investments contribute to pricing optimization and underwriting efficiencies, providing a competitive edge and supporting sustainable growth.

Negative Factors

UK&I Premium Decline

The decline in UK&I premiums highlights challenges in that market, which could impact overall growth if remediation efforts do not succeed.

High Catastrophe Losses

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

Increased Expense Ratio

Rising expense ratios due to higher broker commissions and compensation can pressure margins, affecting long-term profitability.

Intact Financial Corporation Business Overview & Revenue Model

Company Description

Intact Financial Corporation (IFC) is a leading provider of property and casualty insurance in Canada and one of the largest in North America. The company operates primarily through its subsidiaries, offering a diverse range of insurance products including personal auto, home, and commercial insurance solutions. IFC is committed to delivering innovative insurance products and exceptional customer service, leveraging technology and data analytics to enhance its offerings and streamline operations.

How the Company Makes Money

Intact Financial Corporation generates revenue primarily through the underwriting of insurance premiums. The company collects premiums from policyholders in exchange for providing coverage against risks such as property damage, liability, and auto accidents. These premiums are a key revenue stream, as they provide the funds necessary to pay claims and cover operational expenses. Additionally, IFC invests the collected premiums in various financial instruments, allowing the company to earn investment income. The company's profit is influenced by its claims experience, underwriting discipline, and investment performance. Significant partnerships with brokers and agents also contribute to its revenue generation, as these relationships help expand market reach and enhance distribution capabilities, ultimately driving policy sales and increasing overall revenue.

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. Minor concerns include revenue fluctuations and debt levels, but overall, the financial position supports 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: Positive
• Last Price: 280.17
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Positive. The current price of 280.17 is above the 20-day moving average (MA) of 264.04, above the 50-day MA of 267.77, and below the 200-day MA of 284.05, indicating a neutral trend. The MACD of 0.72 indicates Negative momentum. The RSI at 67.36 is Neutral, neither overbought nor oversold. The STOCH value of 70.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:IFC.

Intact Financial Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLF	78 Outperform	$46.18B	15.57	11.96%	3.95%	-19.88%	-13.92%
IFC	77 Outperform	C$47.29B	20.32	16.27%	1.86%	2.51%	44.44%
GWO	76 Outperform	C$54.79B	14.86	15.09%	3.98%	-20.64%	14.88%
DFY	76 Outperform	C$7.99B	19.37	13.44%	1.03%	19.80%	-12.93%
FFH	75 Outperform	$52.82B	7.32	18.65%	0.98%	10.08%	24.18%
IAG	73 Outperform	C$15.47B	15.51	14.34%	2.29%	-25.13%	16.40%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Intact Financial Corporation Corporate Events

Intact Financial Reports Strong Q3-2025 Results with Robust Growth

Intact Financial Corporation reported strong Q3-2025 results, with a 6% increase in operating direct premiums written, driven by growth in commercial and personal lines. The company achieved a combined ratio of 89.8% and a significant increase in net operating income per share to $4.46, reflecting robust underwriting performance and lower catastrophe losses. The operating return on equity rose to 19.6%, highlighting the company’s ability to navigate market cycles effectively.

The most recent analyst rating on (TSE:IFC) stock is a Buy with a C$358.00 price target. To see the full list of analyst forecasts on Intact Financial Corporation stock, see the TSE:IFC Stock Forecast page.