INTACT FINANCIAL $94.32 (Toronto symbol IFC; TSINetwork Rating: Speculative) (416-341- 1464; www.intactfc.com; Shares outstanding: 131.5 million; Market cap: $12.2 billion; Dividend yield: 2.3%) has reached a tentative deal to offer insurance to drivers with the Uber ride-sharing service, under which passengers use a smartphone app to hire drivers who use their own personal vehicles.
Intact won’t reveal further details until provincial insurance regulators sign off on the plan, but it did say it would offer the insurance under its two main brands: Intact Insurance and belairdirect.
Uber says its drivers are covered by a commercial policy for up to $5 million worth of injuries and property damage. However, under Canadian law, commercial drivers must have their own insurance to cover claims incurred while transporting a passenger for profit.
Many drivers would likely be unable to get this insurance if they told their insurance companies they were using their vehicles commercially.
Nonetheless, Uber is spreading rapidly across Canada, and Intact’s new policy could be a profitable one for the company.
Intact Financial is a buy.
