Catastrophes hurt its earnings

Article Excerpt

INTACT FINANCIAL CORP. $198 is a buy. The insurer (Toronto symbol IFC; High-Growth Dividend Payer Portfolio, Finance sector; Shares outstanding: 175.3 million; Market cap: $34.7 billion; Dividend yield: 2.0%; Dividend Sustainability Rating: Above Average; www.intactfc.com) raised its quarterly dividend with the March 2022 payment. Investors now receive $1.00 a share. The annual rate of $4.00 yields 2.0%. In June 2021, Intact completed the acquisition of casualty insurer RSA Insurance in partnership with Tryg A/S. Intact’s share of the $12.3 billion purchase price was $5.1 billion. As a result of the new operations, Intact’s revenue in the three months ended June 30, 2022 jumped 41.3%, to $6.24 billion from $4.41 billion a year earlier. However, earnings per share fell 3.7%, to $3.14 from $3.26, due to higher catastrophe-related losses. Intact Financial is still a buy. buy…