Stephen Takacsy, B. Eng, MBA Intact Financial IFC-T HOLD Jul 26, 2023

All the insurance names, both in Canada and the US, continue to work. If interest rates do, in fact, go higher, that will only be beneficial for lifecos and other insurers. The chart looks fantastic. Good run, so there is some weakening in the intermediate term.

If a long-term holding, best thing you can do is sit on your hands and do nothing except participate in the DRIP program. Especially if he's right on the broader call of rates being 8-10% in the secular bear market of 2030-40, should be a big tailwind for insurers.

EPS growth rate is 18% this and next year, strong. They lead the industry in growth.

EPS of $4.93 beat estimates of $4.18 and revenues of $5.76B missed estiamtes of $5.93B. Its combined ratio was solid at 86.5%, mostly due to solid underlying results across all lines of business. Its ROE was 16.5%, and it incurred $1.5B in catastrophe losses from several natural disasters over the past year. There were no mentions of the LA wildfires in its earnings. As a shareholder, we would be very pleased with these results and the market seems to like the results. It trades at 17.5X forward earnings, on the higher end of its historical average, but the company continues to execute and both margins and free cash flow are great. We would be comfortable slowly averaging in here for a long-term hold.
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Earnings per share growth rate this year and next year is 18%. Wait for a pullback.

Just raised dividend again for about the 20th year in a row. Very strong Q4 underwriting, despite a year of catastrophic losses, shows how resilient the business model is. Great 16.5% ROE. Bit pricey here at 16x for 10% growth. Slightly overbought, buy on pullback.

Executing so well. High catastrophic losses, but ROE still at 16.5%. Underwriting beat. Strong Q4. Canadian and US commercial beat. Firing on all cylinders, resilient in this environment. Trading ~17.5x 2026, growing ~16%. Not a bad buy, but don't chase -- can probably get at $270.

Valuation is high. P&C insurance is very defensive, so it draws crowds when people get panicky in the market and the price gets bid up.  Wait for a better valuation.

It is always expensive. Has a ranking of 422, overall sales growth is modest and has a low ROC. There appears to be better opportunities.

It's delivered, and it's been a great acquisition story. He's not playing the insurance side as much right now. Food for thought:  what's autonomous driving going to do to rates and payouts? Theoretically, it should be positive. Could be a cornerstone of the financial part of your portfolio, but he doesn't own it right now on valuation.

There has been a decline in recent weeks due to lower revenue but the bottom line was not impacted and met expectations. There was an over-reaction to the report so it has become a buying opportunity, now trading at half below its norm for the past 5 to 10 years. It is one of the premium names in the insurance space and has very solid fundamentals.