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  5. IFC: Looking for your thoughts on the earnings and why the 6+% drop. [Intact Financial Corporation]
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Q: Looking for your thoughts on the earnings and why the 6+% drop. I went through the news release and only issue I see was with UK and US results. Is that enough to move the stock that much in a day? The CEO seemed quite positive on the results and future prospects. Seems to have been trending down over the past month after hitting all time highs. Would you consider this current price a buying opportunity? Thanks for this great service.
Asked by Anthony on July 31, 2025
5i Research Answer:

EPS of $5.23 beat estimates of $4.05; revenue of $7.03B matched estimates. National Bank raised its target price to $352. Combined ratio was 86.1% vs 87.1%. No significant catastrophe losses were experienced in the quarter. Underwriting performance was strong and investment contributions were stable. ROE was 16.3% vs 14.0%. Book value rose to $98.67, up 12%. Commerical lines did see pressure in 'large accounts'. Premiums in the UK did fall 5%. On the call, the main concerns were softening of commercial lines and some price weakness in the US. This seems the reason for the decline, though the stock is still up 9% YTD and up 16% over one year. We do not think the long term growth story has been impaired and we would see the dip as more of a buying opportunity.