AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “aa-” of Intact Insurance Company and the subsidiaries of Intact Financial Corporation (IFC). In addition, AM Best has affirmed the Long-Term ICR of “a-” and the Long-Term Issue Credit Ratings (Long-Term IRs) of the parent holding company, IFC [TSX: IFC]. In addition, AM Best has affirmed the Long-Term ICR of “a-” and the Long-Term IR of Intact U.S. Holdings, Inc. (Delaware). The outlook of these Credit Ratings (ratings) is stable. (Please see link below for a detailed list of the companies and Long-Term IRs.) All companies are domiciled in Ontario, Canada, unless otherwise specified.

The ratings reflect IFC’s consolidated balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

IFC maintains very strong risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), that supports its very strong balance sheet assessment and reflects the significant surplus accumulation over the longer term, driven by profitable pre-tax earnings reflective of increasingly profitable underwriting results over the recent five-year period, augmented by increased levels of investment income and realized gains. While strong pre-tax operating earnings over the most-recent five-year period have been driven primarily by investment income, IFC during 2020, reported the largest pre-tax operating income of the recent five-year period of $1.92 billion, due to an increase in underwriting income to $1.23 billion. The favorable business profile reflects IFC’s excellent geographic, product and channel diversification operating in Canada and the United States. IFC is Canada’s largest insurer, specializing in auto, homeowners and commercial insurance, operating with strong brand name recognition and multichannel distribution capabilities across Canada. AM Best considers IFC’s fully integrated ERM program appropriate for its risk profile and considers the scale, scope and complexity of the organization.

A complete listing of the members of Intact Financial Corporation’s FSRs, Long-Term ICRs and Long-Term IRs also is available.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

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