Intact Financial Corporation and Affiliates: Rating Report

On November 21, 2019, DBRS Morningstar confirmed its outstanding ratings on Intact and its affiliates. The rating confirmation reflects Intact's excellent franchise strength, which is supported by a well-diversified product mix and broad distribution network. Intact maintains a dominant market position in the fragmented Canadian P&C insurance industry with 16% aggregate market share. Earnings continue to benefit from consistently good underwriting profitability and favorable prior-year development. The Company has consistently performed better than the industry average in terms of premium growth, underwriting profitability, and ROE. The ratings also consider Intact's relatively high financial leverage, exposure to catastrophe losses, and integration-related risks associated with acquisitions; however, DBRS Morningstar notes that Intact has a solid track record of successfully integrating and adding value from past acquisitions.