Intact adds to niche

Article Excerpt

INTACT FINANCIAL $130.77 (Toronto symbol IFC; TSINetwork Rating: Extra Risk) (416-341-1464; www.intactfc.com; Shares o/s: 139.2 million; Market cap: $18.2 billion; Divd. yield: 2.3%) will buy two regional insurers to continue its push in to specialty insurance. The company is paying a total of $1 billion for The Guarantee Co. of North America and Frank Cowan Co. Ltd. Founded in Montreal in 1872, The Guarantee collects $560 million in annual premiums. That will raise Intact’s specialty premiums in North America to $3 billion. Ontario’s Frank Cowan has two businesses: public entity, and specialty programs and associations. For daycares and schools, the firm places coverage such as malpractice, abuse, child abduction, workplace disruption, computer violation and legal expense. It also places similar coverages for nursing and retirement homes. With their focus on more unusual, higher-risk coverage—from professional liability to marine and aviation—specialty lines generally carry higher premiums. That should further boost company profits. Intact is a top pick for 2019. 2019…