Transcript

Operator

Good morning, ladies and gentlemen, welcome to the Intact Financial Corporation Q2 2026 results conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. Also note that this call is being recorded on July 29th, 2026. I would like to turn the conference over to Geoff Kwan, Chief Investor Relations Officer. Please go ahead, sir.

Geoff Kwan — Chief Investor Relations Officer

Thank you, Sylvie. Hello everyone, thank you for joining the call to discuss our second quarter financial results. A link to our live webcast and materials for this call have been posted on our website at intactfc.com under the Investors tab. Before we start, please refer to slide two for a disclaimer regarding the use of forward-looking statements, which form part of this morning's remarks, and slide three for a note on the use of non-GAAP financial measures and other terms used in this presentation. To discuss our results today, I have with me our CEO, Charles Brindamour, our CFO, Ken Anderson, Patrick Barbeau, our chief, Achraf Louitri, our Senior Vice President, Personal Lines. We will begin with prepared remarks followed by Q&A. With that, I will turn the call over to Charles.

Charles Brindamour — CEO

Thanks, Geoff. Welcome, Achraf. It's your first earnings call. Good morning, everyone, thanks for joining us. Last night, we released our second quarter results. We generated net operating income per share of CAD 3.17, driven by a combined ratio of 94.9, which included approximately four points of excess catastrophes and large losses. Our top line grew 4% in the quarter, driven by continued strength in personal lines. Our ROE was in the upper teens at 17%. Our book value per share grew 13% year-over-year to CAD 111.73. Our balance sheet is very strong with CAD 3.7 billion of excess capital, that positions us well in an attractive M&A environment. This quarter was marked by a higher level of large losses than we've experienced historically then we expected. Given that, we conducted a detailed and thorough review. We did not find any common driver or systemic pattern. We view what happened in Q2 as an anomaly, we're confident that the underlying performance and the fundamentals of our business very strong.