AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “aa-” (Superior) of Intact Insurance Company, the lead company of Intact Financial Corporation (IFC) [TSX: IFC], as well as the core insurance subsidiaries of IFC. Concurrently, AM Best has affirmed the Long-Term ICR of “a-” (Excellent) and the Long-Term Issue Credit Ratings (Long-Term IRs) of IFC, the parent holding company. In addition, AM Best has affirmed the Long-Term ICR of “a-” (Excellent) of Intact U.S. Holdings Inc. (Delaware), an intermediate holding company of IFC. The outlook of these Credit Ratings (ratings) is stable. All companies are domiciled in Ontario, Canada, unless otherwise specified. (Please see below for a complete listing of the FSRs, Long-Term ICRs and Long-Term IRs for the core members of Intact Financial Corporation.)

The ratings reflect IFC’s consolidated balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

IFC’s balance sheet strength assessment is supported by its very strong risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), long-term capital growth and historically favorable reserve development trends. Furthermore, the balance sheet strength assessment reflects IFC’s favorable liquidity profile which is supported by a prudent investment approach. Surplus accumulation over the long term has been driven by capital raises (both debt and stock offerings) in support of acquisitions, as well as profitable operating earnings in more recent years. IFC’s financial leverage ratios remain within AM Best guidelines and have improved through first-quarter 2025, driven by favorable net earnings and re-payment of debt through 2024. Overall, IFC benefits from financial flexibility through access to Canadian and U.S. capital markets.

AM Best views IFC’s operating performance as strong driven by consistently favorable underwriting results through all geographic territories, which includes Canada, the United States, the United Kingdom and Ireland (UK&I). Additionally, overall net earnings have also benefited from increasing net investment income. Despite IFC’s primary market of Canada having seen historical catastrophe activity over the recent five-year period, IFC’s results have remained favorable owing to its underwriting guidelines, market knowledge and geographic diversification. In the UK&I, IFC’s focus in 2024 has been on the integration of Direct Line Insurance Group plc’s brokered commercial lines operations, as well as continued refinement following IFC’s personal lines exit in that market. AM Best notes that these strategic actions are expected to continue enhancing IFC’s operating performance further in the organization’s UK&I business.

AM Best assesses IFC’s business profile as favorable, reflecting excellent geographic, product and channel diversifications in the independent broker channel and direct to consumer. IFC is the largest provider of property/casualty insurance in Canada and benefits from a strong brand name recognition through its operating entities. Intact U.S. provides the organization with further diversification and a North America-based platform to write specialty commercial lines.

AM Best considers IFC’s ERM program as appropriate, supported by a comprehensive risk framework that includes robust internal controls, clearly defined risk appetites and tolerances and effective mitigation strategies.

AM Best also comments that the ratings of The Guarantee Company of North America USA (GCNA), part of IFC’s specialty operations in the United States, remain unchanged and under review with negative implications pending the closing of the proposed sale of GCNA to Hadron Holdco LLC, which remains subject to regulatory approval.

The FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) have been affirmed with stable outlooks for the following members of the Intact Financial Corporation:

• Atlantic Specialty Insurance Company
• Belair Insurance Company Inc.
• Homeland Insurance Company of New York
• Homeland Insurance Company of Delaware
• Intact Insurance Company
• Jevco Insurance Company
• Novex Insurance Company
• OBI America Insurance Company
• OBI National Insurance Company
• Split Rock Insurance, Ltd.
• The Nordic Insurance Company of Canada
• Trafalgar Insurance Company of Canada

The following Long-Term IRs have been affirmed with stable outlooks:

Intact Financial Corporation—

-- “a-” (Excellent) on $500 million, 5.459% senior unsecured medium-term notes, due 2032

-- “a-” (Excellent) on CAD 250 million, Series 2, 6.40% senior unsecured medium-term notes, due 2039

-- “a-” (Excellent) on CAD 100 million, Series 3, 6.2% senior unsecured medium-term notes, due 2061

-- “a-” (Excellent) on CAD 250 million, Series 5, 5.16% senior unsecured medium-term notes, due 2042

-- “a-” (Excellent) on CAD 250 million, Series 6, 3.77% senior unsecured medium-term notes, due 2026

-- “a-” (Excellent) on CAD 425 million, Series 7, 2.85% senior unsecured medium-term notes, due 2027

-- “a-” (Excellent) on CAD 300 million, Series 9, 1.928% senior unsecured medium-term notes, due 2030

-- “a-” (Excellent) on CAD 300 million, 4.653% senior unsecured medium-term notes, due 2034

-- “a-” (Excellent) on CAD 300 million, Series 10, 2.954% senior unsecured medium-term notes, due 2050

-- “a-” (Excellent) on CAD 375 million, Series 12, 2.179% senior unsecured medium-term notes, due 2028

-- “a-” (Excellent) on CAD 250 million, Series 13, 3.765% senior unsecured medium-term notes, due 2053

-- “a-” (Excellent) on CAD 400 million, Series 14, 5.276 % senior unsecured medium-term notes, due 2054

-- “a-” (Excellent) on CAD 300 million, Series 16, 4.645 senior unsecured medium-term notes, due 2060

-- “bbb” (Good) on CAD 150 million, 5.25% preferred shares

-- “bbb+” (Good) on CAD 250 million, 4.125% subordinated debentures, due 2081

-- “bbb” (Good) on CAD 300 million, 7.338% subordinated debentures, due 2083

-- “bbb” (Good) on CAD 250 million, 4.841% non-cumulative five-year reset Class A Series 1 preferred shares

-- “bbb” (Good) on CAD 250 million, 3.457% non-cumulative five-year rate reset Class A Series 3 preferred shares

-- “bbb” (Good) on CAD 150 million, 5.2% non-cumulative fixed rate Class A Series 5 preferred shares

-- “bbb” (Good) on CAD 150 million, 5.3% non-cumulative fixed rate Class A Series 6 preferred shares

-- “bbb” (Good) on CAD 250 million, 4.9% non-cumulative five-year rate reset Class A Series 7 preferred shares

-- “bbb” (Good) on CAD 150 million, 5.4% non-cumulative fixed rate shares Class A Series 9 preferred shares

The following indicative Long-Term IRs under the shelf registration have been affirmed with stable outlooks:

Intact Financial Corporation—

-- “a-” (Excellent) on senior unsecured notes

-- “bbb+” (Good) on subordinated unsecured notes

-- “bbb” (Good) on Class A preferred shares

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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