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Intact Financial Corporation

Intact Financial Corporation (TSX:IFC) Wednesday, July 29th 2015

Intact Financial Corporation

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, unless otherwise noted. The expense and general expense ratios are presented herein net of other underwriting revenues. As a result, total revenues exclude

• ther underwriting revenues.

Net investment income includes our share of the results of jointly held insurance operations, unless otherwise noted. 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 “excess capital” in this presentation include excess capital in the P&C subsidiaries at 170% MCT plus net liquid assets

• utside of the P&C insurance subsidiaries, unless otherwise noted.
• Net operating income per share of $1.56 with a combined ratio of 91.6%
• All business lines contributed to organic growth in DPW of 5%, or 6%

including our recent acquisition of Canadian Direct Insurance Inc.

• Strong financial position with $564 million of excess capital and
• perating ROE of 16.8% for the last 12 months

Intact Financial Corporation

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$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50

H1-11 H1-12 H1-13 H1-14 H1-15

200 400 600 800 1000 1200 1400

Q1-11 Q1-12 Q1-13 Q1-14 Q1-15

Our H1-2015 net operating income per share of $2.93 represents a 4-year compound growth rate

• f 13.3%

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. Note: AMF (Québec) chartered insurance companies are not required to report on Q1 and Q3 results. As such, we have included estimates for non-reporters in our Industry benchmark group, based on publicly available information. Actual results may vary.

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

• We expect the current hard market conditions in personal property to

continue as the magnitude of recent catastrophe losses negatively impacts industry results

• We believe the impact of continued low interest rates and limited

underwriting profitability at the industry level have translated into firmer conditions in commercial lines

• Industry premiums are likely to increase at a low single-digit rate, with

slightly negative growth in personal auto, mid single-digit growth in commercial lines and upper single-digit growth in personal property expected

• We expect future premium reductions in Ontario auto will be

commensurate with government cost reduction measures

• We expect the industry’s combined ratio to continue to improve in 2015

from the recent peak above 100% in 2013, though the level of investment income is unlikely to improve

• We expect the industry’s ROE to trend back toward its long-term

average of 10% in 2015

• We believe we will outperform the industry’s ROE by at least 500 basis

points in the next 12 months

Premium growth Return on equity Underwriting

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11.1% 8.1% 3.7% 2.5% 1.5% 0.7% 1.1% 2.1% 6.4%

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

Personal Lines

Year-over-year underlying DPW growth

Commercial Lines

Year-over-year underlying DPW growth

8.3% 4.3% 0.6%

• 3.2%

2.0% 2.7% 5.7% 4.1% 4.9%

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

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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

• The Ontario government budget 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

• Net cost reduction will become apparent as

the measures are defined in regulation

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

Industry IFC

Cumulative Ontario Auto Rate Decreases *

* Source: IFC estimates based on FSCO quarterly rate filings

6.1% 9.6%

Bill 65 passed Savings from:

• MIG definition reaffirmed
• Heath Care Provider licencing

Bill 15 passed Savings from:

• PJI
• DRS
• Towing

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Background

• Announced February 10, 2015
• $143 million in DPW
• Broadens direct presence for IFC
• Facilitates objective to double direct

capabilities

• Track record of strong underwriting

results

Progress

• The transaction closed on May 1, 2015

and integration efforts are underway

• Targeting annual expense synergies of

$10 million after-tax, and expect our run- rate to reach this level by mid-2017

• IRR estimated above 15%

51% 26% 8% 8% 7%

Ontario Quebec Atlantic Alberta B.C.

59% 30% 9% 2%

2014 IFC Direct Channel: $975M DPW* Direct Channel pro forma with CDI: $1.1B DPW*

* Includes Anthony Insurance and InnovAssur

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Diverse product offering We’ve experienced a strong customer and broker response to our Lifestyle Advantage product, which provides more flexibility for the customer if something happens to their homes. Digital experience We continued to invest in digital innovation, including faster quoting engines on both intact.ca and belairdirect.com websites. Brands Brand awareness has increased notably though greater advertising presence, highlighting the Intact Insurance 30 minute claims guarantee, and continuing sports sponsorships.

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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

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Senior Vice President and Chief Financial Officer

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• Underlying DPW grew by 6% compared to Q2-2014, driven by organic growth initiatives, but also

included two months of premiums from recently acquired CDI, which represented 1.2 points of growth

• Combined ratio of 91.6% is 1.3 points better than the same period last year, due to a better expense

ratio, the success of our profitability initiatives and higher favourable prior year claims development, which more than offset the impact of prolonged winter conditions in Atlantic Canada

1 Refer to Section 5 - Non-IFRS financial measures of the MD&A

(in $ millions, except as otherwise noted)

Q2-2015 Q2-2014 Change YTD-2015 YTD-2014 Change

DPW

2,346 2,173 8% 3,918 3,676 7%

DPW (underlying)

2,344 2,212 6% 3,919 3,745 5%

Underwriting income

158 128 23% 276 179 54%

Combined ratio

91.6% 92.9% (1.3) pts 92.5% 95.0% (2.5) pts

Net operating income per share to common shareholders1

$1.56 $1.53 2% $2.93 $2.47 19%

Earnings per share to common shareholders

$1.47 $1.60 (8)% $2.79 $2.77 1%

Operating return on common shareholders equity for the last 12 months1

16.8% 11.6% 5.2 pts

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• Personal Auto

Personal Property

(in $ millions, except as otherwise noted)

Q2-2015 Q2-2014 Change Direct premiums written 541 461 17% Underwriting income 31 26 19% Combined ratio 92.7% 93.5% (0.8) pts

• Underlying DPW increased by 6% from Q2-2014 on a 7% increase in units due to investments in our brands and

digital strategies, rate actions and the inclusion of two months of CDI premiums

• Combined ratio of 90.3% was 1.2 points better than Q2-2014, which had an unusually low level of favourable

prior year claims development

• Underlying DPW growth of 8% reflected continued firm market conditions, new product offerings, and the

inclusion of 2 months of premiums from the CDI acquisition

• The combined ratio was 0.8 points better than the same period last year, helped by lower catastrophe losses
• f $11 million this quarter compared to $22 million in Q2-2014

65.1% 65.8% 25.2% 25.7% Q2-2015 Q2-2014

Combined Ratio Breakdown Expense Ratio Claims Ratio

58.3% 58.8% 34.4% 34.7% Q2-2015 Q2-2014

Combined Ratio Breakdown Expense Ratio Claims Ratio

(in $ millions, except as otherwise noted)

Q2-2015 Q2-2014 Change Direct premiums written 1,094 1,031 6% Underwriting income 85 72 18% Combined ratio 90.3% 91.5% (1.2) pts

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Commercial Auto

• DPW was up 6% from a year ago
• Combined ratio deteriorated by 14.9 points to 94.4% largely due to higher claims severity and unfavourable

prior year claims development

(in $ millions, except as otherwise noted)

Q2-2015 Q2-2014 Change Direct premiums written 203 192 6% Underwriting income 9 32 (72)% Combined ratio 94.4% 79.5% 14.9 pts

65.8% 49.5% 28.6% 30.0% Q2-2015 Q2-2014

Combined Ratio Breakdown Expense Ratio Claims Ratio

Commercial P&C

• DPW higher by 4%, benefiting from higher rates
• Combined ratio improved 8.7 points to 91.8%, helped by both elevated favourable prior year claims

development due to the resolution of a number of certain old files and by rate increases under our action plan

(in $ millions, except as otherwise noted)

Q2-2015 Q2-2014 Change Direct premiums written 508 489 4% Underwriting income (loss) 33 (2) nm Combined ratio 91.8% 100.5% (8.7) pts

52.5% 60.1% 39.3% 40.4% Q2-2015 Q2-2014

Combined Ratio Breakdown Expense Ratio Claims Ratio

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• Approximately 99% of fixed-income securities

are rated ‘A’ or better

• 86% of preferred shares are rated at least ‘P2L’
• No leveraged investments

Fixed-income strategies, 70% Common equity strategies, 13% Preferred shares, 9% Cash and short- term notes, 4% Loans, 4%

Investment mix

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

$13.4 billion of high quality investments – strategically managed

Net investment gains (losses)

(in $ millions, except as otherwise noted)

Q2-15 Q2-14 Change Gains (losses) on fixed- income strategies and related derivatives (43) 11 (54) Gains (losses) on equity strategies and related derivatives (7) 29 (36) Net gains on broker transactions 21 4 17 Net investment gains (losses) (29) 44 (73) Net investment gains excluding FVTPL fixed- income securities 23 31 (8)

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• Our financial position was strong with 234of

excess capital and an estimated MCT of 200%

• Book value per share increased by 8% for the last 12

months to 25675

• Operating ROE of 3789, while maintaining significant

levels of excess capital

• Debt-to-capital ratio of 3789, below our target of 20%

Intact Financial Corporation

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Wednesday, November 4th, 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(;4.

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• $50
• $40
• $30
• $20
• $10

$0 $10 $20 $30 $40 $50 Q4-2013 Q1-2014 Q2-2014 Q3-2014 Q4-2014 Q1-2015 Q2-2015 Q3-2015 Q4-2015

DPW (millions)

Zero impact by the end of 2015

• As part of our Home Improvement Plan, we are no longer offering two-year property policies in

Québec to allow for more responsive pricing

• At renewal, these policies will be converted to one-year policies
• Reported DPW in Q2-2015 benefited by 24, or two points
• Underlying growth will continue to be unaffected

Two-year policies began to convert into one-year policies starting in Nov. 2013 and continues for eight quarters One-year policies that had formerly been two-year policies renew again, resulting in a positive impact

• n growth in the next four quarters

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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 catastrophic 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 the Risk management section of our MD&A for the year ended December 31, 2014. 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

• n 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 of the Company analyzes performance based on underwriting ratios such as combined, general expenses and claims ratios

as well as other performance measures such as return on equity (“ROE”) and operating return on equity. 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.