Earnings rose 18.9% at Intact Financial Corp.
This firm 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 now rebounded 73% as investors again take note of its underlying business strength. We think this Power Buy is poised to keep moving even higher for our subscribers.
Meanwhile the stock trades at 15.4 times the company’s 2022 earnings forecast.
INTACT FINANCIAL CORP. (Toronto symbol IFC; www.intactfc.com) gives you exposure to Canada’s largest provider of property and casualty insurance.
With the December 2021 payment, Intact raised your quarterly dividend by 9.6%. Investors now receive $0.91 a share instead of $0.83. The new annual rate of $3.64 yields 2.2%.
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 an acquisition of this size, added risk. The firm is nonetheless turning out to be a great fit for Intact, which has successfully integrated a number of acquisitions in the past few years.
Expanding by acquisition adds risk, but specialty insurance policies generally carry higher premiums. Insurers offering specialty lines typically underwrite more difficult and unusual risks or higher-risk accounts. That includes professional liability, marine and aviation coverage.
Dividend Stocks: Another Acquisition Helps Boost Revenues And Earnings
To further emphasize that point, in June 2021, Intact completed the acquisition of casualty insurer RSA Insurance in partnership with Tryg A/S. Tryg is one of the leading insurers in Scandinavia. Intact kept RSA’s Canadian, U.K. and international operations, while Tryg got RSA’s Swedish and Norwegian businesses.
Digital platforms are serving Intact’s customers well through the pandemic crisis. This includes 24/7 access to insurance policy documents, billing statements, claims information, and so on. The number of customers connecting to its digital platforms has more than doubled. In fact, over 40% of eligible auto claims are being digitally appraised through photos submitted on the company’s website and mobile app
Recommendation in Dividend Advisor: Intact Financial Corp. is a buy.