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Investor Insights

This summary was created by AI, based on 11 opinions in the last 12 months.

Intact Financial (IFC-T) is a leading property and casualty insurer in Canada with a strong market share. The company has consistently shown profitable combined ratios and sustainable high teens earnings growth. However, there are concerns about its rich valuation and risks posed by cost inflation and extreme weather events. Despite some reservations, experts acknowledge Intact's strong performance and upward momentum, but advise caution at current levels.

Consensus
Positive
Valuation
Fair Value
HOLD
Intact Financial

Rich valuation, but can't deny how well it's done. Consistently profitable on combined ratio (premiums in, minus claims and expenses). Huge market share. He owns CB instead.

insurance
BUY
Intact Financial

Likes this segment in P&C. Represents value. Will do well in falling interest rate environment, though some interest rate yields moving higher, which has affected this type of name. 

insurance
PAST TOP PICK
Intact Financial
(A Top Pick Oct 26/23, Up 43%)

Very strong second quarter. Still grows earnings at a sustainable high teens rate, impressive. Combined ratio is ~87%. Modest dampening enthusiasm due to its richer valuation at 17.5x earnings, compared to its average of 15.5x.

insurance
DON'T BUY
Intact Financial
Keep adding to a position?

Depends on what percentage it makes of your portfolio, plus what your cost base is. #1 competitor to DFY is IFC. The industry is consolidating more. DFY might have a leg up on IFC, as DFY is smaller and can buy a few more things in Canada.

Cost inflation and extreme weather give him pause in this area. Both well-run businesses, but inclined to stay away. The sector poses some risks.

insurance
BUY
Intact Financial

In financials, his biggest weight is insurance. His #1 position is FFH in P&C, but MFC is a significant position as well. He also has IFC. This group is behaving well. 

insurance
DON'T BUY
Intact Financial

It has good upward momentum but he wouldn't buy at these levels. He is concerned about insurance payments for weather related events. Intact has been able to pass along increasing replacement costs to their clients.

insurance
TOP PICK
Intact Financial

There are a lot of risks out there -- presidential elections, wars, hard landings, soft landings, stagflation. This name has very little sensitivity to the macro. No matter what, can return solid returns from organic growth and M&A. 14x PE, growing 18%. Yield is 2.1%.

Core position. If the A thesis doesn't work, there's a B thesis. Not if it will help your portfolio, but when.

(Analysts’ price target is $251.00)
insurance
DON'T BUY
Intact Financial

All reinsurance in property & casualty business. Really expensive in Canada. IFC is the monster, DFY is a newer entrant. He owns none of them. Likes the business, but valuation is too high.

insurance
BUY ON WEAKNESS
Intact Financial

Defense and offense. Executing very well. Book value is up 6%. Beat on underwriting by 25%. Increased dividend by 10%. Organic revenue up 8% YOY. Increased his target price to $256. 19% EPS growth. Trades at 14x, reasonable.

insurance
BUY ON WEAKNESS
Intact Financial

Great name to have in a portfolio, great capital builder. Solid underwriting, solid investment income. ROE above 12% on last report. Reasonable 15x, with 17% growth rate. He likes to get things at a bit of a discount, so try for $200-202.

insurance
BUY
Intact Financial
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

IFC is the industry-leading property and casualty insurer in Canada and it has held a strong lead for many years. Its main competitors include DFY, TRV, FFH, GWO, SLF, and a few other private insurers. 

IFC has demonstrated the highest annual returns against these names over both a five and 10-year timeframe. IFC holds the highest market share in Canada for P&C, representing around 17% market share as of 2022. IFC trades at a relatively higher valuation compared to its peers, although, we feel this is justified given its industry-leading position and quality fundamentals. Its main segments include Canadian P&C insurance (69% of sales), UK and international (21% of sales), and specialty lines within the US (10% of sales).

IFC has decided to sell the UK direct personal lines operations (RSA's assets). This move allows RSA to focus on becoming a leading UK commercial and specialty lines player, which we feel is a smart strategic move. Commercial and specialty lines is a more lucrative line of business, and we feel IFC has made the right move. The stock has recovered from the initial news, and continues to demonstrate its quality management team.
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insurance
PARTIAL BUY
Intact Financial

Well-run and enjoys impressive growth through acquisitions. Has pricing power. He expects more growth and market share. High profitability, but trades at a higher-than-market 17x PE. You can buy a position here.

insurance
TOP PICK
Intact Financial

The biggest P&C insurer at 20% market share. They boast sharp underwriting, consistently around 90-95% combine ratios, and ROE is higher than peers at 15% ROE. Expects them to keep buying smaller companies in a fragmented industry. Their huge bond portfolio is thriving during high bond yields; that's a kicker.

(Analysts’ price target is $219.55)
insurance
Unspecified
Intact Financial

It is the gold standard for companies in property and casualty insurance, but is expensive. He prefers Definity (DFY) which has better value, better results and is growing faster. Definity is transferring from a policy holder type of company to a corporation and there is lots of upside in acquisitions that could be made.

insurance
BUY
Intact Financial

It is in the insurance business, has made good acquisitions, and executes well.

insurance
Showing 1 to 15 of 228 entries

Intact Financial(IFC-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 6

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 3

Total Signals / Votes : 10

Stockchase rating for Intact Financial is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Intact Financial(IFC-T) Frequently Asked Questions

What is Intact Financial stock symbol?

Intact Financial is a Canadian stock, trading under the symbol IFC-T on the Toronto Stock Exchange (IFC-CT). It is usually referred to as TSX:IFC or IFC-T

Is Intact Financial a buy or a sell?

In the last year, 10 stock analysts published opinions about IFC-T. 6 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Intact Financial.

Is Intact Financial a good investment or a top pick?

Intact Financial was recommended as a Top Pick by on . Read the latest stock experts ratings for Intact Financial.

Why is Intact Financial stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Intact Financial worth watching?

10 stock analysts on Stockchase covered Intact Financial In the last year. It is a trending stock that is worth watching.

What is Intact Financial stock price?

On 2024-12-13, Intact Financial (IFC-T) stock closed at a price of $263.3.