Canadian insurer Intact Financial Q3 adj EPS misses estimates

Overview

• Canada property and casualty insurer's Q3 adjusted EPS for Q3 missed analyst expectations

• Combined ratio rose to 94.0% due to higher catastrophe losses

Outlook

• Company expects industry premium growth in Personal lines to be in the high-single-digit range

• Intact sees industry premium growth in Commercial and Specialty lines in the low to mid-single-digit range

Result Drivers

• CATASTROPHE LOSSES - Co said higher-than-expected catastrophe losses weighed on underwriting results and combined ratio

• PERSONAL LINES GROWTH - Co cited strength in Personal lines, including 10% growth in Personal auto DPW and 7% in Personal property DPW

• DISTRIBUTION AND INVESTMENT INCOME - Co said distribution and investment income contributed meaningfully to net operating income per share

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "hold."

• Wall Street's median 12-month price target for Intact Financial Corp is C$310.00, about 17.1% above its November 2 closing price of C$264.66

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• Nov 3 - AIG Q3 net premiums written rise on commercial, personal insurance growth

• Nov 3 - United Fire Group Q3 profit falls 10% as combined ratio worsens

• Nov 3 - British insurer Hiscox's nine-month premiums rise on retail demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)