Intact’s digital push will keep paying off

Article Excerpt

Intact Financial dropped along with the market when COVID-19 first hit—the stock fell to as low as $104.81 in March 2020. But the shares have rebounded 39%, close to all-time highs, as investors again appreciate Intact’s underlying business strength. Meantime, we think this Power Buy is poised to keep moving even higher. INTACT FINANCIAL, $145.60, is a buy. The insurer (Toronto symbol IFC; TSINetwork Rating: Extra Risk) (www.intactfc.com; Shares outstanding: 143.0 million; Market cap: $25.9 billion; Dividend yield: 2.3%) is Canada’s largest provider of property and casualty coverage: it insures 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 September 2017. The Minnesota-based insurance holding company focuses on property-casualty insurance. Through its businesses, the firm provides a range of specialty insurance products. OneBeacon represented Intact’s entry into the U.S. market to drive future growth. Still expanding beyond its home market, plus…