(in Canadian dollars except as otherwise noted) TORONTO, July 30, 2024 /CNW/ - (TSX:IFC)  Highlights Operating DPW1,2 growth of 6%, largely organic and led by continued momentum in personal lines Combined ratio1 of 87.1% reflected a solid underlying performance across all geographies and limited catastrophe activity Net operating income per share1 increased to $4.86 (and EPS of $4.04) driven by very strong underwriting results, as well as solid growth in investment and distribution income Operating ROE1 increased by 4 points year-over-year to 17.0%, while a 13.7% ROE1 fuelled a BVPS1 growth of 15% over the same period Strong balance sheet with $2.9 billion of total capital margin1 from solid earnings and adjusted debt-to-total capital ratio1 down to 19.8% Charles Brindamour, Chief Executive Officer, said: "With the recent flooding and wildfire events in Canada, our teams have been quick to respond and are actively helping customers get back on track. In these difficult times, we are reminded of how important our purpose is and why our work matters. For the second quarter, our business delivered strong results, predominately due to excellent underlying performance across all lines of business. Operating ROE was in the high-teens on the back of solid earnings growth. Top line momentum continues to be strong, especially in personal lines, and we are focused on making the most of the current market conditions in commercial lines by leveraging our distribution channels and pricing expertise. With our profitability momentum, balance sheet strength and investments in our competitive advantages, we are well on our way to return to our 10% net operating income per share growth trajectory and to outperform the industry ROE by at least 500 basis points every year." Consolidated Highlights(in millions of Canadian dollars except as otherwise noted) Q2-2024 Q2-2023 Change H1-2024 H1-2023 Change Operating direct premiums written1,2 6,655 6,226 6 % 11,765 11,035 6 % Combined ratio1,3 87.1 % 96.3 % (9.2) pts 89.1 % 94.2 % (5.1) pts Underwriting income1,3 681 184 270 % 1,140 578 97 % Operating net investment income 387 326 19 % 767 621 24 % Distribution income1 169 137 23 % 269 242 11 % Net operating income attributable to common shareholders1 866 410 111 % 1,513 952 59 % Net income 758 260 192 % 1,431 637 125 % Per share measures (in dollars) Net operating income per share (NOIPS)1,4 $4.86 $2.34 108 % $8.48 $5.43 56 % Earnings per share (EPS) - diluted4 $4.04 $1.30 211 % $7.72 $3.36 130 % Book value per share1 $88.00 $76.29 15 % Return on equity for the last 12 months Operating ROE1 17.0 % 12.9 % 4.1 pts Adjusted ROE1 16.7 % 11.8 % 4.9 pts ROE1 13.7 % 9.0 % 4.7 pts Total capital margin1 2,884 2,482 402 Adjusted debt-to-total capital ratio1 19.8 % 22.5 % (2.7) pts 12-Month Industry Outlook We expect favourable insurance market conditions to continue, driven by past catastrophe losses and inflation pressures: Both personal property and auto premium growth could reach double-digits; and In commercial and specialty lines across all geographies, we expect mid-single-digit premium growth. ___________________________________________ 1  This release contains Non-GAAP financial measures, Non-GAAP ratios and other financial measures (each as defined in National Instrument 52-112 "Non-GAAP and Other Financial Measures Disclosure"). Refer to Section 14 – Non-GAAP and other financial measures in the Q2-2024 Management's Discussion and Analysis for further details. 2  DPW change (growth) is presented in constant currency. 3  Presented on an undiscounted basis. Underwriting income comparative figures have been reclassified accordingly. 4   Per share metric is calculated based on the weighted-average diluted number of common shares. Segment Results (in millions of Canadian dollars except as otherwise noted) Q2-2024 Q2-2023 Change H1-2024 H1-2023 Change Operating direct premiums written1,2 Canada 4,563 4,270 7 % 7,815 7,266 8 % UK&I3 1,315 1,202 7 % 2,560 2,437 2 % US 777 754 1 % 1,390 1,332 4 % Total 6,655 6,226 6 % 11,765 11,035 6 % Combined ratio1  Canada 85.4 % 97.9 %  (12.5) pts 88.1 % 94.9 %  (6.8) pts UK&I3 92.2 % 94.1 %  (1.9) pts 93.4 % 94.3 %  (0.9) pts US 88.5 % 91.3 % (2.8) pts 88.3 % 90.2 % (1.9) pts Combined ratio 87.1 % 96.3 % (9.2) pts 89.1 % 94.2 % (5.1) pts Q2-2024 Consolidated Performance Overall operating DPW increased 6% led by rate increases and unit growth in hard market conditions across personal lines. Within commercial lines, growth was led by rates in the mid-single digits, with market conditions varying by line of business. Overall combined ratio was strong at 87.1%, 9 points better than last year, with 7 points attributable to lower catastrophe losses compared to last year's elevated level and 2 points attributable to an improvement in our underlying performance. Operating net investment income of $387 million increased 19% year-over-year, driven by higher reinvestment yields captured in the latter half of 2023. Distribution income increased by 23% to $169 million, mainly due to higher commission revenues from solid organic growth and contributions from our M&A activities. Lines of Business P&C Canada Personal auto premium grew by 11%, reflecting strong rate increases and continued unit growth. The combined ratio remained solid at 91.4%, in a seasonally favourable quarter. This reflected an underlying performance improvement of 3 points year-over-year, which tempered lower favourable PYD in the quarter.   Personal property premiums grew by 9%, driven by strong rate increases and continued unit growth. The combined ratio was very strong at 78.0%, reflecting robust underlying results and favourable PYD, coupled with low catastrophe losses in a typically active season. Commercial lines premiums grew by 1%, reflecting mid-single-digit rates, mainly offset by continued competition for large accounts and an unfavourable timing impact in renewals. The combined ratio was very strong at 83.6%, 6 points lower than last year, mainly due to lower catastrophe losses. P&C UK&I2 Excluding the impact of the UK Personal Lines exit, operating DPW growth was 42%, mainly due to the DLG brokered commercial lines acquisition in Q4-2023. Organic growth was 6%, reflecting mid-single-digit rate actions and solid new business. The combined ratio was healthy at 92.2%, in line with expectations following the DLG acquisition.  P&C US2 Operating DPW grew 1%, as a result of mid-single-digit rate actions in most lines of business, as well as corrective actions and reduced exposures in certain segments. The combined ratio continued to be solid at 88.5% for the quarter, 3 points better than prior year, reflecting favourable PYD and continued growth in profitable business lines. ___________________________________________ 1 This release contains Non-GAAP financial measures, Non-GAAP ratios and other financial measures (each as defined in National Instrument 52-112 "Non-GAAP and Other Financial Measures Disclosure"). Refer to Section 14 – Non-GAAP and other financial measures in the Q2-2024 Management's Discussion and Analysis for further details. 2 DPW change (growth) is presented in constant currency. 3 The comparative period results presented in the table are on a reported basis. Following the exit of the UK personal lines operations in 2023, performance of this segment is now analyzed on a pro-forma basis (which excludes UK Personal Lines results) for comparability. Pro-forma growth in constant currency was 42% in Q2-2024 and 35% in H1-2024. Pro-forma combined ratios were 90.4% for Q2-2023 and 89.4% for H1-2023. Net Operating Income, EPS and ROE Net operating income attributable to common shareholders increased from last year to $866 million, driven by strong underwriting, investment and distribution results. Earnings Per Share of $4.04, up $2.74 year-over-year, driven by solid operating and non-operating performances. Operating ROE of 17.0% and ROE of 13.7% reflected strong earnings across the business. Balance Sheet The Company ended the quarter in a strong financial position, with a total capital margin of $2.9 billion, with solid regulatory capital ratios in all jurisdictions. Adjusted debt-to-total capital ratio was down to 19.8% as at June 30, 2024, in line with our long-term target. IFC's book value per share (BVPS) of $88.00 as at June 30, 2024 increased 15% year-over-year, and was 4% higher than Q1-2024, due to strong operating earnings. Common Share Dividend The Board of Directors approved the quarterly dividend of $1.21 per share on the Company's outstanding common shares. The dividends are payable on September 27, 2024, to shareholders of record on September 13, 2024. Preferred Share Dividends The Board of Directors also approved a quarterly dividend of 30.25625 cents per share on the Company's Class A Series 1 preferred shares, 21.60625 cents per share on the Class A Series 3 preferred shares, 32.50 cents per share on the Class A Series 5 preferred shares, 33.125 cents per share on the Class A Series 6 preferred shares, 37.575 cents per share on the Class A Series 7 preferred shares, 33.75 cents per share on the Class A Series 9 preferred shares, and 32.8125 cents per share on the Class A Series 11 preferred shares. The dividends are payable as of September 30, 2024, to shareholders of record on September 13, 2024. Analysts' Estimates The average estimate of earnings per share and net operating income per share for the quarter among the analysts who follow the Company was $3.00 and $3.57, respectively. Management's Discussion and Analysis (MD&A) and Interim Condensed Consolidated Financial Statements This Press Release, which was approved by the Company's Board of Directors on the Audit Committee's recommendation, should be read in conjunction with the Q2-2024 MD&A, as well as the Q2-2024 interim condensed consolidated financial statements, which are available on the Company's website at www.intactfc.com and later today on SEDAR+ at www.sedarplus.ca. For the definitions of measures and other insurance-related terms used in this Press Release, please refer to the MD&A and to the glossary available in the "Investors" section of the Company's website at www.intactfc.com. Conference Call Details Intact Financial Corporation will host a conference call to review its earnings results tomorrow at 11:00 a.m. ET. To listen to the call via live audio webcast and to view the Company's interim condensed consolidated financial statements, MD&A, presentation slides, Supplementary financial information and other information not included in this press release, visit the Company's website at www.intactfc.com and link to "Investors". The conference call is also available by dialing 416-764-8659 or 1-888-664-6392 (toll-free in North America). Please call 10 minutes before the start of the call. A replay of the call will be available on July 31, 2024 at 2 p.m. ET until August 7, 2024. To listen to the replay, call 416-764-8677 or 1-888-390-0541 (toll-free in North America), entry code 632576. A transcript of the call will also be made available on Intact Financial Corporation's website. About Intact Financial Corporation Intact Financial Corporation (TSX:IFC) is the largest provider of property and casualty (P&C) insurance in Canada, a leading provider of global specialty insurance, and, with RSA, a leader in the UK and Ireland. Our business has grown organically and through acquisitions to over $22 billion of total annual operating DPW. In Canada, Intact distributes insurance under the Intact Insurance brand through agencies and a wide network of brokers, including its wholly owned subsidiary BrokerLink. Through belairdirect, Intact distributes directly to consumers. Intact also provides affinity insurance solutions through affinity groups, travel insurance, as well as exclusive and tailored offerings through Intact Prestige. In the US, Intact Insurance Specialty Solutions provides a range of specialty insurance products and services through independent agencies, regional and national brokers, and wholesalers and managing general agencies. In the UK, Ireland, and Europe, Intact provides personal, commercial and specialty insurance solutions through the RSA, NIG and FarmWeb brands. Non-GAAP and other financial measures Non-GAAP financial measures and Non-GAAP ratios (which are calculated using Non-GAAP financial measures) do not have standardized meanings prescribed by IFRS (or GAAP) and may not be comparable to similar measures used by other companies in our industry. Non-GAAP and other financial measures are used by management and financial analysts to assess our performance. Further, they provide users with an enhanced understanding of our financial results and related trends, and increase transparency and clarity into the core results of the business. Non-GAAP financial measures and Non-GAAP ratios used in this Press Release and the Company's financial reports include measures related to our consolidated performance, our underwriting performance and our financial strength. For more information about these supplementary financial measures, Non-GAAP financial measures, and Non-GAAP ratios, including definitions and explanations of how these measures provide useful information, refer to Section 14 – Non-GAAP and other financial measures in the Q2-2024 MD&A dated July 30, 2024, which is available on our website at www.intactfc.com and on SEDAR+ at www.sedarplus.ca. Table 1  Reconciliation of NOI, NOIPS and OROE to Net income attributable to shareholders Q2-2024 Q2-2023 H1-2024 H1-2023 Net income attributable to shareholders, as reported under IFRS 750 252 1,423 629 Remove: pre-tax non-operating results 128 200 140 348 Remove: non-operating tax expense (benefit)  16 (19) (5) 14 NOI attributable to shareholders 894 433 1,558 991 Remove: preferred share dividends and other equity distribution (28) (23) (45) (39) NOI attributable to common shareholders 866 410 1,513 952 Divided by weighted-average diluted number of common shares (in millions) 178.5 175.3 178.5 175.3 NOIPS (in dollars) 4.86 2.34 8.48 5.43 NOI attributable to common shareholders for the last 12 months 2,575 1,952 Adjusted average common shareholders' equity, excluding AOCI 15,151 15,145 OROE for the last 12 months 17.0 % 12.9 % Table 2  Reconciliation of underwriting results on a MD&A basis with the interim condensed consolidated financial statements (quarterly) Financial statements F/S  1 2 3 4 5 6