Intact controls a “wide moat” built on proprietary data and sophisticated pricing algorithms. Its status as an industry consolidator is second to none: in fact, the firm has a long history of acquiring smaller insurers, integrating them into its technology platform, and extracting significant synergies that immediately boost earnings.
Investors also benefit from a growing dividend stream and a defensive business model. As insurance is a non-discretionary purchase for most individuals and businesses, the company’s cash flow is highly predictable.
Meanwhile, the stock trades at just 14.5 times the company’s forward earnings forecast
INTACT FINANCIAL (Toronto symbol IFC; www.intactfc.com) is a #1 Power Buy for your 2026 investing. The insurer is Canada’s largest provider of property and casualty coverage: its policies cover more than five million individuals and businesses. Intact Insurance, Canada BrokerLink and belairdirect are its major brands.
In a bid to add value for investors, the company acquired OneBeacon Insurance Group for $1.7 billion U.S. in 2017. The Minnesota-based insurance holding company focuses on property-casualty coverage. Through its businesses, the firm provides a range of specialty insurance products (marine, sports, entertainment and more).
Meanwhile, in June 2021, Intact completed the acquisition of casualty insurer RSA Insurance in partnership with TrygA/S, one of the leading non-life insurers in Scandinavia.
Under the transaction, Intact kept RSA’s Canadian, U.K. and international operations, while Tryg got RSA’s Swedish and Norwegian businesses. The partners paid a total of $12.3 billion for RSA—$5.1 billion from Intact and $7.2 billion from Tryg.
RSA’s Denmark business remained jointly owned by the two firms, but last year they sold the unit for $2.52 billion (Intact received 50%).
In late 2024, Intact acquired Jiffy Inc., Canada’s leading home maintenance app. The purchase price has not yet been disclosed. Jiffy is an app-based service that connects homeowners with local service professionals.
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Founded in 2015, Jiffy has grown steadily since its launch with Canadian operations in the Greater Toronto Area, Ottawa and Calgary.
Through this link up, Intact believes Jiffy has the platform and capabilities to rapidly expand its services across more Canadian jurisdictions, while at the same time supporting Intact’s own goals of engaging three out of four Canadian customers digitally.
Intact’s triple digit earnings grow as weather losses subside
For the three months ended September 30, 2025, Intact’s revenue rose 7.0%, to $6.64 billion from $6.21 billion a year earlier. Overall earnings per share jumped 341.6%, to $4.46 from $1.01. Last year included $5.03 of catastrophe losses due to severe weather events in Canada, which included wildfires, hailstorm and flooding.
Going forward, Intact expects continued “hard market conditions.” That’s when demand for insurance is high and companies like Intact can enforce stricter rules about what kind of risks they are willing to insure. This generally means more profitable policies. Meanwhile, digital platforms continue to serve Intact’s customers well. This includes 24-hour access to insurance policy documents, billing statements, claims information, and so on. Over 75% of customers now connect to its digital platforms.
The stock trades at an attractive 14.5 times the $17.81 a share that Intact is forecast to earn in 2026. With the March 2025 payment, the company raised its quarterly dividend for investors by 9.9%. The stock now yields a solid 2.3%.
Growth by acquisition adds risk, especially with a string of deals as big as RSA. However, Intact has a long track record of successfully integrating its acquisitions.
Recommendation in Dividend Advisor: Intact Financial Corp. is a buy.
