Intact Monetary Company (IFC) subsidiary BrokerLink “stays properly on observe to realize its ambition of $5 billion in annual premiums by 2025,” IFC CEO Charles Brindamour mentioned through the insurer’s 2024 Q1 earnings name Wednesday.
In 2023, BrokerLink surpassed $3.5 billion in direct premiums written (DPW). BrokerLink president Joe D’Annunzio instructed Canadian Underwriter final month the brokerage goals to increase its DPW to $5 billion by the end of 2025.
In the course of the earnings name, Brindamour mentioned the insurer has made significant progress on strategic initiatives over the previous few months throughout all of its enterprise items.
“In Canada, BrokerLink continues to consolidate the market and efficiently closed 4 acquisitions this quarter, representing roughly 190 million of premium,” says Brindamour. “The enterprise stays properly on observe to realize its ambition of 5 billion in annual premiums by 2025.
“Our distribution enterprise stays an vital and rising earnings driver.”
In March, BrokerLink acquired Owen Sound, Ont.-based Hanbidge & Bowman Ltd. Insurance Professionals. Final month, the brokerage introduced the acquisition of two different Ontario brokerages: M. Edward Powell Insurance coverage Brokers Ltd. in Oakville and Russ Bastow Insurance coverage Dealer Ltd. in Ajax. It additionally acquired the non-public and small-to-medium enterprise industrial insurance coverage e book of enterprise from Ottawa-based Halpenny Insurance coverage Brokers Ltd.
First quarter outcomes
Wanting on the firm’s 2024 Q1 outcomes, Brindamour mentioned the general undiscounted mixed ratio for all areas stood at 91.2%, down from 91.9% in 2023 Q1, “which mirrored stable underlying efficiency throughout all geographies.” Intact’s Canadian P&C section specifically fared barely higher at 90.7% undiscounted mixed ratio in 2024 Q1, down from 91.7% in 2023 Q1.
In Canadian private auto, the undiscounted mixed ratio deteriorated 1.5 factors to 98.6% in 2024 Q1 from 97.1% one yr in the past. This included a “two-point influence from [winter] seasonality and two factors of one-offs from swimming pools and [higher] worker compensation, pushed by sturdy outperformance in 2023,” Brindamour mentioned.
Inflation has additionally moderated considerably since peaking in late 2022 and has stabilized within the mid-single digit vary for the previous couple of quarters, Brindamour mentioned through the name. “On the similar time, earn charges and insured values stay at excessive single digits through the quarter. Consequently, we’re assured that our sturdy price actions will help our sub-95 steering within the subsequent 12 months, and we’re pleased to develop at this profitability degree.”
The undiscounted mixed ratio for private property strains in Canada was sturdy at 82.5% within the newest quarter, with no Cat losses reported, Brindamour mentioned. That was two share factors higher than a yr in the past. “We count on weather-related volatility, although, and inflation to maintain arduous market circumstances over the following 12 months.”
In industrial strains, the mixed ratio (undiscounted) improved 3.5 factors from 90.8% a yr in the past to 87.3% within the newest quarter. Brindamour attributed the sturdy mixed ratio to “profitability actions over time, and beneficial prior-year growth within the quarter.
“With the market remaining arduous throughout most strains, we count on premium development in ’24 to be within the mid- to high-single digits for the trade,” he mentioned. “Consequently, the enterprise stays well-placed to delivered sustainable low-90s or higher [combined ratio] efficiency going ahead.”
General, working DPW in Canada elevated 9% to $3.252 billion within the first quarter of 2024, up from $2.996 billion in the identical quarter final yr, Intact mentioned in its Administration’s Dialogue and Evaluation (MD&A) doc.
Canadian private auto DPW was up 11% to $1.3 billion in 2024 Q1 from $1.169 billion in 2023 Q1.
Private property DPW elevated 9% to $828 million from $760 million.
Business strains’ DPW elevated 5% to $1.124 billion, up from $1.067 billion in 2023 Q1.
Function picture by iStock.com/piggu
