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Intact Financial Corporation

Intact Financial Corporation (TSX:IFC) Wednesday, February 10th 2016

Intact Financial Corporation

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Chief Executive Officer

Intact Financial Corporation

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Important notes:

Unless otherwise noted, DPW refers to DPW as reported under IFRS, excluding industry pools (referred to as “DPW” or “reported DPW” in this presentation). All underwriting results and related ratios exclude the MYA, but include our share of the results of jointly held insurance operations. Net investment income includes our share of the results of jointly held insurance operations. Catastrophe claims are any one claim, or group of claims, equal to or greater than $7.5 million, related to a single event. All references to “total excess capital” in this presentation include excess capital in the P&C insurance subsidiaries at 170% MCT plus excess capital outside

• f the P&C insurance subsidiaries, unless otherwise noted.

Certain totals, subtotals and percentages may not agree due to rounding. Not meaningful (nm) is used to indicate that the current and prior year figures are not comparable, not meaningful, or if the percentage change exceeds 1,000%.

• Net operating income per share of $1.97 with a solid combined ratio of 88.6%
• Strong underlying DPW growth of 7%, driven by 6 points of organic growth
• Operating ROE of 16.6% for the last twelve months with total excess capital of

$625 million

• Book value per share up 6% this year to $39.83
• Quarterly dividend increased 9% to $0.58 per share

Intact Financial Corporation

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$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00

2011 2012 2013 2014 2015

200 300 400 500 600 700 800

5-year avg. YTD Q3-2015

Our FY2015 net operating income per share of $6.38 represents a 5-year compound growth rate

• f 13%

NOIPS growth

We have consistently exceeded our 500 bps ROE

• utperformance target versus the industry*

ROE outperformance

500 bps target

Industry data: IFC estimates based on MSA Research excluding Lloyd’s, ICBC, SGI, SAF, MPI, Genworth and IFC. IFC’s ROE corresponds to the AROE, which excludes the after-tax impact of acquisition-related items.

Intact Financial Corporation

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We remain well-positioned to continue !%$( ' the Canadian P&C insurance industry in the current environment

• In the current interest rate environment, we estimate that the industry’s pre-tax

investment yield will decline slightly, given its asset mix and duration

• Economic data suggests that more time is required for global recovery to take

hold

• Industry capital levels could be negatively impacted if volatility results in

continued downward pressure on market values

• We expect low-single-digit growth personal auto, as mild rate reductions in

Ontario are offset by increases in other markets

• We expect upper single-digit growth in personal property, supported by

continuing hard market conditions

• We expect mid single-digit growth in commercial lines, as continued low

interest rates and elevated loss ratio of the past years have translated into firmer conditions

• We expect growth at a low single digit rate
• We expect the industry’s combined ratio to continue to improve in 2016 from

the recent peak above 100% in 2013

• Overall, we expect the industry’s ROE to trend back toward its long-term

average of 10%.

Market environment Overall Capital markets

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3.7% 2.5% 1.5% 0.7% 1.1% 2.1% 6.4% 9.5% 10.0%

Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15

Personal Lines

Year-over-year underlying DPW growth

Commercial Lines

Year-over-year underlying DPW growth

0.6%

• 3.2%

2.0% 2.7% 5.7% 4.1% 4.9% 4.0% 2.9%

Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Contribution from CDI

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Personal Auto Personal Property

(in $ millions, except as otherwise noted)

Q4-2015 Q4-2014 Change DPW (underlying) 452 407 11% Underwriting income 123 109 13% Combined ratio 72.7% 73.6% (0.9) pts

• Solid underlying DPW growth of 9%, with 2.5 points of contribution from CDI, was mainly driven by our organic

growth initiatives and rational market dynamics

• Combined ratio deteriorated by 3.2 points primarily due to headwinds from body injury trends in Alberta
• Underlying DPW growth of 11.1% comes from 8.4 points of organic growth and a 2.7 point contribution from

the CDI acquisition

• Combined ratio of 72.7% was 0.9 points better than Q4-2014 due to our profitability initiatives, absence of

CAT losses and benign weather conditions

71.0% 68.9% 25.9% 24.8% Q4-2015 Q4-2014

Combined Ratio Breakdown Expense Ratio Claims Ratio

38.8% 40.0% 33.9% 33.6% Q4-2015 Q4-2014

Combined Ratio Breakdown Expense Ratio Claims Ratio

(in $ millions, except as otherwise noted)

Q4-2015 Q4-2014 Change DPW (underlying) 808 739 9% Underwriting income 28 53 (47)% Combined ratio 96.9% 93.7% 3.2 pts

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Commercial Auto

• Underlying DPW grew 2.7%, led by strength from its regular, trucking and fleet businesses
• Combined ratio deteriorated 8.4 points, as prior year claims development became unfavourable. We are

implementing corrective measures, targeting a combined ratio sustainably in the low 90’s.

(in $ millions, except as otherwise noted)

Q4-2015 Q4-2014 Change DPW (underlying) 168 163 3% Underwriting income (loss) (13) 1 nm Combined ratio 107.9% 99.5% 8.4 pts

78.6% 71.9% 29.3% 27.6% Q4-2015 Q4-2014

Combined Ratio Breakdown Expense Ratio Claims Ratio

Commercial P&C

• Underlying DPW grew 2.9%, all organic, buoyed by increasing rates and solid retention levels
• Combined ratio improved by 7 points due to several factors, including lower large losses, profitability initiatives,

higher prior year claims development and benign weather

(in $ millions, except as otherwise noted)

Q4-2015 Q4-2014 Change DPW (underlying) 477 468 3% Underwriting income 83 53 57% Combined ratio 80.1% 87.1% (7.0) pts

40.7% 49.4% 39.4% 37.7% Q4-2015 Q4-2014

Combined Ratio Breakdown Expense Ratio Claims Ratio

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Diverse product offering We are focusing on growing our business by introducing innovative products such as Lifestyle Advantage or the new Enhanced Water Damage Package in personal property, as well as solutions for cyber risk, fleet telematics, and drones in commercial lines. Digital experience We continued to invest in digital innovation, including faster quoting engines on both intact.ca and belairdirect.com websites, and a practical, new online tool called Coverage Advisor. Brands Brand awareness has increased notably though greater advertising presence, highlighting the Intact Insurance 30 Minute Claims Guarantee, and continuing sports sponsorships.

Intact Financial Corporation

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We have a !%,) $%%. .%'versus the industry due to our disciplined approach and quality operations Our % '()$ % enables us to take advantage of growth opportunities We continue our (# approach to capital management

Intact Financial Corporation

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Senior Vice President and Chief Financial Officer

Intact Financial Corporation

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• Underlying DPW grew by 7.5% compared to Q4-2014, driven by organic growth initiatives, and included

1.7 points from our acquisition of CDI

• Our 88.6% combined ratio reflects a solid underwriting performance driven by our profitability initiatives

in personal property and commercial P&C, combined with mild weather conditions

1 Refer to Section 22 - Non-IFRS financial measures of the MD&A

(in $ millions, except as otherwise noted)

Q4-2015 Q4-2014 Change FY2015 FY2014 Change

DPW1

1,897 1,760 8% 7,907 7,349 8%

DPW (underlying)1

1,908 1,775 7% 7,922 7,461 6%

Underwriting income1

221 216 5 628 519 109

Combined ratio

88.6% 88.2% 0.4 pts 91.7% 92.8% (1.1) pts

Net operating income per share to common shareholders1

$1.97 $1.84 7% $6.38 $5.67 13%

Earnings per share to common shareholders

$1.46 $1.52 (4)% $5.20 $5.79 (10)%

Operating return on common shareholders equity for the last 12 months1

16.6% 16.3% 0.3 pts

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• 99% of fixed-income securities are rated ‘A-’ or

better

• 82% of preferred shares are rated at least ‘P2L’
• No exposure to leveraged securities

Fixed-income strategies, 71% Common equity strategies, 13% Preferred shares, 9% Cash and short- term notes, 4% Loans, 3%

Investment mix

(net of hedging positions and financial liabilities related to investments)

$13.5 billion – strategically managed

Net investment gains (losses)

(in $ millions, except as otherwise noted)

Q4-15 Q4-14 Change

Gains (losses) on fixed-income strategies and related derivatives (17) 38 (55) Gains (losses) on equity strategies and related derivatives (55) (41) (14) Investments in associates and joint ventures

• Net investment

gains (losses) (72) (3) (69)

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• Our financial position was strong with 23 of

excess capital and an estimated MCT of 45

• Book value per share increased by 6% for the last 12

months to 246784, despite absorbing unrealized losses from weaker capital markets amounting to $1.26 in 2015

• Healthy Operating ROE of 3735, up 0.3 points from last

year

• Debt-to-capital ratio of 3735, below our target of 20%

Intact Financial Corporation

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Maintain leverage ratio

(target 20% debt-to-total capital)

Increase dividends Debt-to-capital ratio Quarterly common share dividends (per share) Manage volatility Invest in growth

• pportunities

Share buybacks

$0.16 $0.25 $0.27 $0.31 $0.32 $0.34 $0.37 $0.40 $0.44 $0.48 $0.53 $0.58 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1-16

11.8% 14.3% 22.9% 18.9% 18.7% 17.3% 16.6%

2009 2010 2011 2012 2013 2014 2015

Intact Financial Corporation

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Website: http://www.intactfc.com Click on “Investor Relations” tab Email: ir@intact.net Phone: 416.941.5336 1.866.778.0774 (toll-free)

Samantha Cheung, MBA, M.Sc.Eng., P.Eng. Vice President, Investor Relations Phone: 416.344.8004 Email: samantha.cheung@intact.net Maida Sit, CFA Director, Investor Relations Phone: 416.341.1464 ext 45153 Email: maida.sit@intact.net

To access our 2014 online annual report featuring interactive photos, videos, dynamic charts, and additional media, please scan the QR code or visit $ %7%)%()7) :.

Intact Financial Corporation

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• Ontario auto accounts for approximately one

quarter of our direct premiums written

• We continued our solid outperformance

versus the industry

• We continue to believe we can protect our

margins in Ontario

Update

• Bill 91, stemming from the April budget

announcement outlines additional actions to reduce costs which include:

– Updating the catastrophic impairment definition – Reducing the standard duration of medical and rehabilitation benefits to be more in line with other provinces

• We expect the bulk of the rate reductions

reflecting these latest reforms, to be approved in Q1-2016

The Ontario government has a mandate to reduce insurance rates while also reducing costs for insurers

• 12%
• 10%
• 8%
• 6%
• 4%
• 2%

0% Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15

Industry IFC

Cumulative Ontario Auto Rate Decreases *

* Source: IFC estimates based on FSCO quarterly rate filings

6.9% 10.6%

Bill 65 passed Savings from:

• MIG definition

reaffirmed

• Heath Care Provider

licencing Bill 15 passed Savings from:

• PJI
• DRS
• Towing

Bill 91 passed Savings from:

• Updated Cat

definition

• AB Changes

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Certain of the statements included in this presentation about the Company’s current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. The words “may”, “will”, “would”, “should”, “could”, “expects”, “plans”, “intends”, “trends”, “indications”, “anticipates”, “believes”, “estimates”, “predicts”, “likely”, “potential” or the negative or

• ther variations of these words or other similar or comparable words or phrases, are intended to identify forward-looking statements.

Forward-looking statements are based on estimates and assumptions made by management based on management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors that management believes are appropriate in the

• circumstances. Many factors could cause the Company’s actual results, performance or achievements or future events or developments to differ materially

from those expressed or implied by the forward-looking statements, including, without limitation, the following factors: the Company’s ability to implement its strategy or operate its business as management currently expects; its ability to accurately assess the risks associated with the insurance policies that the Company writes; unfavourable capital market developments or other factors which may affect the Company’s investments and funding obligations under its pension plans; the cyclical nature of the P&C insurance industry; management’s ability to accurately predict future claims frequency; government regulations designed to protect policyholders and creditors rather than investors; litigation and regulatory actions; periodic negative publicity regarding the insurance industry; intense competition; the Company’s reliance on brokers and third parties to sell its products to clients; the Company’s ability to successfully pursue its acquisition strategy; the Company’s ability to execute its business strategy; the Company’s ability to achieve synergies arising from successful integration plans relating to acquisitions, including its acquisition of Canadian Direct Insurance Inc. (“CDI”), as well as management's estimates and expectations in relation to resulting accretion, internal rate of return and debt-to-capital ratio; the Company’s participation in the Facility Association (a mandatory pooling arrangement among all industry participants) and similar mandated risk-sharing pools; terrorist attacks and ensuing events; the

• ccurrence of catastrophe events; the Company’s ability to maintain its financial strength and issuer credit ratings; access to debt financing and the

Company's ability to compete for large commercial business; the Company’s ability to alleviate risk through reinsurance; the Company’s ability to successfully manage credit risk (including credit risk related to the financial health of reinsurers); the Company’s reliance on information technology and telecommunications systems and potential disruption to those systems, including evolving cyber-attack risk; the Company’s dependence on key employees; changes in laws or regulations; general economic, financial and political conditions; the Company’s dependence on the results of operations of its subsidiaries; the volatility of the stock market and other factors affecting the Company’s share price; and future sales of a substantial number of its common shares. All of the forward-looking statements included in this presentation are qualified by these cautionary statements and those made in Risk management (Sections 16-19) of the MD&A. These factors are not intended to represent a complete list of the factors that could affect the Company. These factors should, however, be considered carefully. Although the forward-looking statements are based upon what management believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. When relying on forward- looking statements to make decisions, investors should ensure the preceding information is carefully considered. Undue reliance should not be placed on forward-looking statements made herein. The Company and management have no intention and undertake no obligation to update or revise any forward- looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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This Presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall it or any part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever. The information contained in this Presentation concerning the Company does not purport to be all-inclusive or to contain all the information that a prospective purchaser or investor may desire to have in evaluating whether or not to make an investment in the Company. The information is qualified entirely by reference to the Company’s publicly disclosed information. No representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its the directors, officers or employees as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation and no responsibility or liability is accepted by any person for such information or opinions. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the attendees with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation that may become apparent. The information and opinions contained in this Presentation are provided as at the date of this Presentation. The contents

• f this Presentation are not to be construed as legal, financial or tax advice. Each prospective purchaser should contact his, her or its own legal adviser,

independent financial adviser or tax adviser for legal, financial or tax advice. The Company uses both International Financial Reporting Standards (“IFRS”) and certain non-IFRS measures to assess performance. Non-IFRS measures do not have any standardized meaning prescribed by IFRS and are unlikely to be comparable to any similar measures presented by other

• companies. Management analyzes performance based on underwriting ratios such as combined, expense, loss and claims ratios, MCT, and debt-to-

capital, as well as other non-IFRS financial measures, namely DPW (underlying), Underlying current year loss ratio, Underwriting income, NOI, NOIPS, OROE, ROE, AROE, Non-operating results, AEPS, Cash flow available for investment activities, and Market-based yield. These measures and other insurance related terms are defined in the Company’s glossary available on the Intact Financial Corporation web site at www.intactfc.com in the “Investor Relations” section. Additional information about the Company, including the Annual Information Form, may be found online on SEDAR at www.sedar.com.