Who are Intac's main competitors and how does IFC compare with them in terms of market share, growth trajectory and valuation ? What are the major components of IFC's business and their geographical presence ? What's your take on company's recent decision for selling their UK Personal Line of business to Admiral, as, looks like, the news caused some concern among investors resulting a bit of selling in the stock, over past 2 days. (BTW, we started a 1.5% position, on Friday. Thanks for the alert !! )
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.