Intact is the largest Property/Casualty (P/C) insurer in Canada, with almost 20% market share after the acquisition of the Canadian operations of UK insurer RSA, a deal which closed this month. Intact consistently outperforms the industry in terms of profitability and CEO Chares Brindamour aims to outperform the industry Return on Equity (RoE) by 5% annually over time.
Wealth Builder
Sorry, you do not have access to this content.Income Investor
Sorry, you do not have access to this content.Having almost quadrupled since its initial recommendation in 2011, it’s appropriate to take half profits on Intact, which remains the premier P&C company in Canada and will continue to benefit from the RSA acquisition. Given its size, however, transformational deals like RSA will become more difficult to find. In the meantime, smaller P&C companies like our recent recommendation of Definity Financial Corp. (TSX: DFY) offer the opportunity to enjoy the excellent economics of the P&C business. Sell half for a gain of 292%. - Gavin Graham
Current Advice
Sell Half
Consult your broker/advisor
Capital Gain/Loss
286.4%