Intact Financial: Great Company, Great Results, Not A Great Price

Summary

• Intact Financial Corporation is the dominant Property & Casualty Insurer in Canada, expanding into the U.S. and U.K. through acquisition.
• Strong financial performance with triple the benchmark TSX return over the last decade, but valuation is currently high compared to peers.
• Q2 results show impressive figures, but potential challenges ahead include pricing pressure, competition, and international business concerns.
• While Intact is a great business at peak performance, the current overvaluation to peers seems likely to unwind over time.
• The Intact preferred shares offer a safer return potential for income investors.

Kubrak78

Intact Financial Corporation (TSX:IFC:CA) is the dominant Property & Casualty Insurer in Canada. After reaching market dominance in Canada by acquisition, the company has expanded into the U.S. and U.K. by further acquisitions in recent years.

Property & Casualty Insurance

Analyst’s Disclosure: I/we have a beneficial long position in the shares of IFC.PR.G:CA, IFC.PR.E:CA, IFC.PR.F either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The author is not an investment advisor, and offers no advice here. He shares his own analysis solely for the interest of readers.