/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED
STATES/
TORONTO, Aug. 18, 2017 /CNW/ - Intact Financial Corporation
(TSX: IFC) ("IFC" or the "Company") announced today that it has closed its previously announced bought deal offering of 6,000,000
Class A Series 6 Preferred Shares (the "Series 6 Shares") (the "Offering") underwritten by a syndicate of underwriters (the
"Underwriters") led by CIBC Capital Markets together with BMO Capital Markets, National Bank Financial and TD Securities Inc.,
resulting in gross proceeds to IFC of $150 million.
The net proceeds from the Offering are intended to be used by IFC to fund a portion of the purchase price for its previously
announced acquisition (the "Acquisition") of all of the issued and outstanding shares of OneBeacon Insurance Group, Ltd.
("OneBeacon"). The closing of the Acquisition is expected to occur in the third quarter or early fourth quarter of 2017 and
is subject to receipt of required regulatory approvals. If the Acquisition is not completed, the net proceeds of this Offering
will be used for general corporate purposes.
Each Series 6 Share entitles the holder thereof to receive quarterly non-cumulative preferential cash dividends, if, as and
when declared by the Board of Directors, on the last day of March, June, September and December in each year at a rate equal to
$0.33125 per share. The initial dividend, if declared, will be paid on December 29, 2017 and will be $0.49007 per share.
The Series 6 Shares will commence trading today on the Toronto Stock Exchange under the symbol IFC.PR.F.
The Series 6 Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be
offered or sold in the United States absent registration or an applicable exemption from the
registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the Series 6 Shares in any State in which such offer, solicitation or sale would be unlawful.
About Intact Financial Corporation
Intact Financial Corporation (TSX: IFC) is the largest provider of property and casualty (P&C) insurance in Canada with over $8.0 billion in annual premiums. Supported by over 12,000
employees, the Company insures more than five million individuals and businesses through its insurance subsidiaries and is the
largest private sector provider of P&C insurance in British Columbia, Alberta, Ontario, Québec, Nova Scotia and
Newfoundland & Labrador. The Company distributes insurance under the Intact Insurance brand through a wide network of brokers, including its wholly
owned subsidiary, BrokerLink, and directly to consumers
through belairdirect.
Forward Looking Statements
This press release contains forward-looking statements. When used in this press release, the words "may", "will", "would",
"should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts",
"likely", "potential" or the negative or other variations of these words or other similar or comparable words or phrases, are
intended to identify forward-looking statements. This press release contains forward-looking statements with respect to, among
other things, the financing structure for the Acquisition and the completion of and timing for completion of the Acquisition.
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 timing and completion of the Acquisition; expected competition and
regulatory processes and outcomes in connection with the Acquisition; 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,
floating rate securities and funding obligations under its pension plans; the cyclical nature of the property and casualty
insurance industry; management's ability to accurately predict future claims frequency and severity, including in the
Ontario personal auto line of business, as well as the evaluation of losses relating to the
Fort McMurray wildfires, catastrophe losses caused by severe weather and other weather-related
losses; 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 and provide services to the Company; 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; the terms and conditions of the Acquisition; management's
expectations in relation to synergies, future economic and business conditions and other factors and resulting effect on the
metrics used by management in relation to the Acquisition; the Company's financing plans for the Acquisition, including the
availability of equity and debt financing in the future; various other actions to be taken or requirements to be met in
connection with the Acquisition and integrating the Company and OneBeacon after completion of the Acquisition; 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 occurrence of catastrophe events, including a major earthquake; 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
ability to contain fraud and/or abuse; the Company's reliance on information technology and telecommunications systems and
potential failure of or disruption to those systems, including 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 and the ability of the Company's subsidiaries to pay dividends; the volatility of the stock market
and other factors affecting the trading prices of the Company's securities (including the Series 6 Shares); the Company's ability
to hedge exposures to fluctuations in foreign exchange rates; future sales of a substantial number of its common shares; changes
in applicable tax laws, tax treaties or tax regulations or the interpretation or enforcement thereof; and the timing of the
distribution of Common Shares upon closing of the Acquisition.
Certain material factors or assumptions are applied in making these forward-looking statements, including that the additional
financing of the Acquisition is completed; that the Acquisition will be completed in the third quarter or early fourth quarter of
2017; that the anticipated benefits of the Acquisition to IFC will be realized, including the impact on growth and accretion in
various financial metrics; that reserves will be strengthened following closing of the Acquisition; that the protection we have
purchased against adverse reserve developments will be sufficient; the accuracy of certain cost assumptions, including with
respect to employee retention matters; and the amounts that will be recovered from certain obligations and litigation
matters.
All of the forward-looking statements included or incorporated by reference in this press release are qualified by these
cautionary statements, those made in the "Risk Management" sections of management's discussion and analysis of operating and
financial results for the year ended December 31, 2016 and the three and six months ended
June 30, 2017 and those made in the prospectus supplement dated August 11,
2017 filed in respect of the Offering. 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
in this press release. The Company has no intention and undertakes 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.
SOURCE Intact Financial Corporation
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