Actuarial Notes

2025 Annual Report

By Intact Financial Corporation · 2026

Intact Financial Corporation's annual report for the year ended December 31, 2025: the shareholder letters, then the MD&A and the audited consolidated financial statements. Intact describes itself as a global provider of property and casualty insurance, with $25.1 billion of 2025 operating direct premiums written — 69% in Canada, 19% in the UK and International (UK&I) and 12% in the US. The MD&A, dated February 10, 2026, is presented in millions of Canadian dollars and is to be read with the consolidated financial statements that follow it.

About us

  • We’re motivated by our Purpose
  • We’re driven by our Values
  • We’re guided by our core belief

What we do

  • 2025 Operating Direct Premiums Written

What we aim to achieve

  • 2025 strategic highlights

Our roadmap

  • 2025 highlights of our strategic progress

A strong track record

  • Net Operating Income Per Share CAGR over time
  • ROE outperformance versus the industry over time (in points)
  • Total shareholder return
  • 2025 financial highlights

Why invest in Intact

CEO’s letter

  • Success must be clear
  • The plan must be outside-in and grounded in the long term
  • The plan needs to be built on your strengths
  • Where opportunities lie
  • Build a talent fortress
  • Conclusion

Chair’s letter

  • Adapting to disruptive trends — and thriving
  • Strong financial performance despite volatile markets
  • Robust governance approach
  • Active shareholder engagement
  • Strong succession pipeline
  • Stronger together

Our board

Our leadership

Management’s Discussion and Analysis

  • Overview
    • Section 1 - About Intact Financial Corporation
  • Performance
    • Section 2 - Consolidated performance
      • The 2025 combined ratio was 88.2% (92.2% in 2024): an underlying current year loss ratio of 56.7%, a CAT loss ratio of 3.7%, a favourable prior-year claims development (PYD) ratio of 6.2% and an expense ratio of 34.0%.
      • By segment, the 2025 combined ratio was 86.8% in Canada, 94.8% in UK&I and 85.1% in the US.
    • Section 3 - Segment performance
    • Section 4 - Canada segment
      • 4.1 Canada underwriting performance
      • 4.2 Personal auto
      • 4.3 Personal property
      • 4.4 Commercial lines
    • Section 5 - UK and International (UK&I) segment
    • Section 6 - US segment
    • Section 7 - Corporate and other
    • Section 8 - Catastrophe losses
      • 8.1 Net Catastrophe (CAT) losses — current year CAT losses of 844 million in 2025 (489 million of them in Canada), against $1,539 million in 2024
      • 8.2 CAT thresholds — a catastrophe claim is any one claim or group of claims, before reinsurance, from a single event, equal to or above a set threshold; from January 1, 2026 the thresholds are 15 million in Canada, £10 million in UK&I, US7.5 million in the US and $20 million in aggregate across segments
      • 8.3 CAT guidance — $1.2 billion of annual CAT losses expected for 2026, net of reinsurance, about 75% of them in the Canadian segment
    • Section 9 - Investment performance
    • Section 10 - Distribution income
    • Section 11 - Non-operating results
    • Section 12 - Income taxes
  • Environment & Outlook
    • Section 13 - Industry outlook for P&C Insurance
    • Section 14 - Guidance and ambitions
  • Strategy
    • Section 15 - What we are aiming to achieve
    • Section 16 - Our strategic roadmap
    • Section 17 - Progress on our two financial objectives
    • Section 18 - Relative performance update
    • Section 19 - Climate strategy
  • Financial Condition
    • Section 20 - Financial position
    • Section 21 - Claims liabilities and reinsurance
      • 21.1 Claims liabilities — case reserves plus IBNR, discounted; the liability for incurred claims stood at 27.5 billion direct and 23.5 billion net at December 31, 2025
      • 21.2 Prior-year claims development (PYD) — PYD is the change in prior-year claims liabilities net of reinsurance, excluding exited lines; the favourable PYD ratio averaged 4.8% over five years and 3.5% over ten
      • 21.3 Reinsurance — mainly excess-of-loss cover; the 2026 catastrophe program retains 350 million on Canadian events, with a 5,700 million limit
    • Section 22 - Employee future benefit programs
    • Section 23 - Capital management
  • Risk Management
    • Section 24 - Enterprise Risk Management Framework
    • Section 25 - Risk Governance
    • Section 26 - Top, Emerging and Transversal Risks
      • 26.4 Own Risk and Solvency Assessment
    • Section 27 - Financial risk
  • Additional Information
    • Section 28 - Non-GAAP and other financial measures
    • Section 29 - Accounting and disclosure matters
    • Section 30 - Shareholder information
    • Section 31 - Selected annual and quarterly information
    • Section 32 - Glossary and definitions

Consolidated Financial Statements

  • Management’s responsibility for financial reporting
  • Independent auditor’s report
  • Consolidated Balance Sheets
  • Consolidated Statements of Income
  • Consolidated Statements of Comprehensive Income
  • Consolidated Statements of Changes in Equity
  • Consolidated Statements of Cash Flows
  • Notes to Consolidated Financial Statements
    • Note 1 – Status of the Company
    • Note 2 – Summary of material accounting policies
    • Note 3 – Material accounting judgments, estimates and assumptions
    • Note 4 – Business combinations and disposals
    • Note 5 – Investments
    • Note 6 – Derivative financial instruments
    • Note 7 – Fair value measurement
    • Note 8 – Financial risk
    • Note 9 – Insurance and reinsurance contracts
    • Note 10 – Insurance risk
    • Note 11 – Reinsurance
    • Note 12 – Goodwill and intangible assets
    • Note 13 – Investments in associates and joint ventures
    • Note 14 – Property and equipment
    • Note 15 – Other assets and other liabilities
    • Note 16 – Debt outstanding
    • Note 17 – Share capital
    • Note 18 – Non-controlling interests
    • Note 19 – Accumulated other comprehensive income (loss)
    • Note 20 – Capital management
    • Note 21 – Net investment return and net insurance financial result
    • Note 22 – Other net gains (losses) and other income and expense
    • Note 23 – Expense by nature
    • Note 24 – Acquisition, integration and restructuring costs
    • Note 25 – Income taxes
    • Note 26 – Earnings per share
    • Note 27 – Share-based payment plans
    • Note 28 – Employee future benefits
    • Note 29 – Segment information
    • Note 30 – Additional information on the Consolidated statements of cash flows
    • Note 31 – Related-party transactions
    • Note 32 – Commitments and contingencies
    • Note 33 – Disclosures on rate regulation
    • Note 34 – Standards issued but not yet effective

Five-year financial history

Three-year quarterly financial history

Cautionary note regarding forward-looking statements

Shareholder and corporate information

Sources

  • Intact Financial Corporation — Annual Reports — the page listing the "Annual Report 2025" (the site's own annual-reports feed, intactfc.com/annual-reports?date=2025, gives the file)
  • 2025 Annual Report (Intact Financial Corporation, PDF) — the document, read 2026-10-30 (248 pages, sha256 ebf5104c49d23dc6a90eef6155084931a6709b60cc4e28e022beaad20f584dff): headings from its bookmark outline and table of contents; the premium split from "What we do" and MD&A Section 1; the MD&A date from its introduction; the figures from Table 2.3, Sections 8.1–8.3 and Sections 21.1–21.3