ENGLISH Stats Supplement Q3-2020 MASTER (clean - no ......CONSOLIDATED RESULTS (cont'd) (in millions...

Intact Financial Corporation (TSX : IFC)

Q3-2020

SUPPLEMENTARY FINANCIAL INFORMATION

(UNAUDITED)

Page (link) Page (link)

Consolidated results (MD&A basis) 3 Financial position 11

Top line Balance sheet

Consolidated performance Pre-tax unrealized gains (losses) on AFS securities

Underwriting ratios Book value per share

Per share measures Investment portfolio 12

Return on equity (for the last 12 months) Total portfolio

Financial position Credit quality

Full-time equivalent number of employees Maturity

Consolidated results (cont'd) 4 Sector

Pre-tax operating income Investment portfolio (cont'd) 13

Non-operating gains (losses) Net exposure: investment mix by asset class

Other comprehensive income (loss) Net exposure: sector mix by asset class

Underwriting results 5 Net exposure: by currency

DPW and NPW Capital management and rating information 14

Underwriting results Regulatory Capital Ratios (RCRs) and Total capital margin

Underwriting ratios Rating information

Canada 6 Shareholder information 15

DPW and NPW Number of shares outstanding

DPW growth Common share performance

Underwriting results Dividends

Pre-tax operating income (PTOI) Normal course issuer bid (NCIB) program

Personal lines 7 P&C Insurance industry 16

Personal lines Canadian P&C insurance industry

Personal auto Reconciliations to Financial Statements 17

Personal property DPW

Commercial lines 8 Net earned premiums

Canada Total net claims

U.S. Underwriting expenses

Net catastrophes by line of business 9 Underwriting income (loss)

Net catastrophe claims (excluding reinstatement premiums) Finance costs

Current year CAT loss ratio (including reinstatement premiums) Income tax recovery (expense)

Historical prior year claims development 9 Reconciliations of non-IFRS financial measures 18

By line of business ROE

Annualized unfavourable (favourable) development (as a % of opening reserve) NOI, NOIPS and OROE

Corporate and other 10 AEPS and AROE

Performance

Net investment income

Net gains (losses)

Important notes

Financial results are reported under International Financial Reporting Standards (IFRS).

We completed the acquisitions of The Guarantee and Frank Cowan on December 2, 2019 and On Side on October 1, 2019. The results of operations and balance sheet are included in our consolidated financial reports from the closing

dates. In Q4-2019, the DPW of The Guarantee were reported by segment and included in the various lines of business, and the related underwriting income was reported in Other income. Starting in Q1-2020, the underwriting results

of The Guarantee are reported by segment and included in the various lines of business. The operating results of Frank Cowan and On Side are included in Distribution and Other.

When relevant, we present changes in constant currency, which exclude the impact of fluctuations in foreign exchange rates from one period to the other, to enhance the analysis of our results with comparative periods.

We use both IFRS and non-IFRS measures to assess performance. Non-IFRS measures do not have any standardized meanings prescribed by IFRS and are unlikely to be comparable to any similar measures presented

by other companies. These measures and other insurance-related terms used in this Supplementary Financial Information are defined in the glossary available in the "Investors" section of our website at www.intactfc.com.

For additional information, the reader should refer to our MD&A and Consolidated financial statements.

The French translation of the terms used in this Supplementary Financial Information is available in the "Investors" (Financial reports & filings) section of our website at www.intactfc.com.

INDEX

2

CONSOLIDATED RESULTS(in millions of Canadian dollars, except as otherwise noted - unaudited) 2020 2019 2019 2018 2017 2016 2015

Refer to Important notes for the impact of recent acquisitions # Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 YTD YTD Annual Annual Annual Annual Annual

Top line

Direct premiums written 1 3,264 3,382 2,521 2,670 3,012 3,152 2,215 2,392 2,708 9,167 8,379 11,049 10,090 8,730 8,277 7,901

Growth YOY 2 8.4% 7.3% 13.8% 11.6% 11.2% 8.4% 6.4% 4.3% 22.9% 9.4% 8.8% 9.5% 15.6% 5.5% 4.8% 6.2%

Growth YOY - in constant currency 3 8.2% 6.8% 13.7% 11.7% 11.0% 7.9% 5.5% 3.8% 22.9% 9.1% 8.4% 9.1% 15.4% 5.5% 4.8% 6.2%

Consolidated performance (MD&A basis)

Net earned premiums 4 2,863 2,712 2,766 2,692 2,581 2,500 2,438 2,509 2,462 8,341 7,519 10,211 9,715 8,530 7,946 7,535

Growth YOY 5 10.9% 8.5% 13.5% 7.3% 4.8% 3.7% 4.5% 4.5% 18.3% 10.9% 4.3% 5.1% 13.9% 7.3% 5.5% 4.6%

Underwriting income 6 369 284 159 229 198 75 (37) 210 152 812 236 465 474 486 375 628

Net investment income 7 143 141 150 142 146 148 140 143 136 434 434 576 541 448 429 439

Distribution EBITA and Other 8 81 78 44 45 56 72 36 42 41 203 164 209 175 158 134 123

Finance costs 9 (31) (32) (31) (28) (30) (30) (32) (30) (27) (94) (92) (120) (114) (91) (82) (71)

Other income (expense) 10 (16) (15) (8) (2) (15) (5) (1) (9) (5) (39) (21) (23) (30) (11) (5) (16)

Pre-tax operating income (PTOI) 11 546 456 314 386 355 260 106 356 297 1,316 721 1,107 1,046 990 851 1,103

Operating income tax benefit (expense) 12 (135) (106) (71) (83) (78) (48) 7 (75) (60) (312) (119) (202) (207) (219) (191) (243)

Effective tax (recovery) rate 13 24.9% 23.2% 22.6% 21.5% 21.9% 18.4% -6.2% 21.1% 20.2% 23.7% 16.5% 18.3% 19.8% 22.1% 22.4% 22.0%

Net operating income (NOI) 14 411 350 243 303 277 212 113 281 237 1,004 602 905 839 771 660 860

Non-operating gains (losses) 15 (114) (130) (166) (109) (119) (62) 33 (44) (37) (410) (148) (257) (147) (36) (156) (219)

Income before income taxes 16 432 326 148 277 236 198 139 312 260 906 573 850 899 954 695 884

Income tax benefit (expense) 17 (98) (63) (41) (37) (49) (30) 20 (68) (61) (202) (59) (96) (192) (162) (154) (178)

Effective tax (recovery) rate 18 22.9% 19.1% 27.9% 13.4% 20.8% 15.0% (14.0)% 21.8% 23.5% 22.3% 10.3% 11.3% 21.4% 17.0% 22.2% 20.1%

Net income 19 334 263 107 240 187 168 159 244 199 704 514 754 707 792 541 706

Underwriting ratios

Claims ratio 20 56.1% 56.3% 63.6% 62.6% 63.1% 67.1% 72.0% 62.7% 63.8% 58.7% 67.3% 66.0% 65.3% 65.4% 64.9% 61.3%

Expense ratio 21 31.0% 33.2% 30.7% 28.9% 29.2% 29.9% 29.5% 29.0% 30.0% 31.6% 29.6% 29.4% 29.8% 28.9% 30.4% 30.4%

Combined ratio 22 87.1% 89.5% 94.3% 91.5% 92.3% 97.0% 101.5% 91.7% 93.8% 90.3% 96.9% 95.4% 95.1% 94.3% 95.3% 91.7%

Per share measures (basic and diluted) (in $)

Net operating income per share (NOIPS) 23 2.78 2.35 1.61 2.08 1.91 1.44 0.73 1.93 1.62 6.74 4.08 6.16 5.74 5.60 4.88 6.38

Growth YOY 24 45.5% 63.0% 120.5% 7.8% 17.9% 4.3% (9.9)% 19.1% 0.6% 65.2% 7.4% 7.3% 2.5% 14.8% (23.5)% 12.5%

Earnings per share to common shareholder (EPS) 25 2.25 1.74 0.66 1.63 1.26 1.13 1.06 1.67 1.34 4.65 3.45 5.08 4.79 5.75 3.97 5.20

Growth YOY 26 78.6% 54.0% (37.7)% (2.4)% (6.0)% 2.7% 55.9% 4.4% 7.2% 34.8% 10.4% 6.1% (16.7)% 44.8% (23.7)% (10.2)%

Adjusted EPS (AEPS) 27 2.52 2.01 1.01 1.77 1.47 1.28 1.22 1.88 1.59 5.54 3.97 5.75 5.70 5.82 4.53 5.54

Growth YOY 28 71.4% 57.0% (17.2)% (5.9)% (7.5)% (1.5)% 29.8% 21.3% 12.8% 39.5% 3.9% 0.9% (2.1)% 28.5% (18.2)% (7.8)%

Book value per share (BVPS) 29 56.22 53.95 51.71 53.97 51.20 49.90 50.21 48.73 49.27 56.22 51.20 53.97 48.73 48.00 42.72 39.83

Growth YOY 30 9.8% 8.1% 3.0% 10.8% 3.9% 2.6% 6.1% 1.5% 5.8% 9.8% 3.9% 10.8% 1.5% 12.4% 7.3% 5.5%

Return on equity (for the last 12 months)

Operating ROE (OROE) 31 16.9% 15.6% 14.0% 12.5% 12.4% 12.0% 11.9% 12.1% 11.6% 16.9% 12.4% 12.5% 12.1% 12.9% 12.0% 16.6%

Return on equity (ROE) 32 11.5% 10.1% 9.2% 10.0% 10.2% 10.6% 10.6% 9.9% 9.8% 11.5% 10.2% 10.0% 9.9% 12.8% 9.6% 13.4%

Adjusted ROE (AROE) 33 13.4% 12.0% 11.0% 11.4% 11.6% 12.1% 12.3% 11.8% 11.2% 13.4% 11.6% 11.4% 11.8% 13.0% 11.0% 14.3%

Financial position

Total investments 34 19,607 19,199 17,824 18,608 17,766 17,446 17,281 16,897 16,999 19,607 17,766 18,608 16,897 16,774 14,386 13,504

Total assets 35 34,110 33,184 32,229 32,292 30,103 29,580 28,806 28,461 28,540 34,110 30,103 32,292 28,461 27,838 22,866 21,315

Debt outstanding 36 2,476 2,524 2,725 2,362 1,945 2,192 2,200 2,209 2,189 2,476 1,945 2,362 2,209 2,241 1,393 1,143

Total shareholder's equity 37 9,215 8,891 8,571 8,747 8,155 7,973 8,016 7,810 7,886 9,215 8,155 8,747 7,810 7,463 6,088 5,724

Total capital margin 38 1,871 1,707 1,485 1,222 1,116 1,269 1,367 1,333 1,177 1,871 1,116 1,222 1,333 1,135 970 625

Debt-to-total capital ratio 39 21.2% 22.1% 24.1% 21.3% 19.3% 21.6% 21.5% 22.0% 21.7% 21.2% 19.3% 21.3% 22.0% 23.1% 18.6% 16.6%

Full-time equivalent number of employees 40 16,153 15,977 15,939 15,719 13,799 14,045 13,671 13,687 13,599 16,153 13,799 15,719 13,687 13,459 12,223 11,694

2020 20182019

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3

CONSOLIDATED RESULTS (cont'd)(in millions of Canadian dollars, except as otherwise noted - unaudited) 2020 2019 2019 2018 2017 2016 2015


Pre-tax operating income

By business segment

Canada 1 426 332 199 227 236 125 (26) 235 168 957 335 562 564 627 499 744

U.S. 2 21 26 (1) 44 14 18 21 13 22 46 53 97 71 8 - -

Corporate and Other 3 99 98 116 115 105 117 111 108 107 313 333 448 411 355 352 359

Total 4 546 456 314 386 355 260 106 356 297 1,316 721 1,107 1,046 990 851 1,103

Non-operating gains (losses)

Net gains (losses):

Realized and unrealized gains (losses) on FVTPL bonds 5 15 179 50 (47) 3 59 100 48 (47) 244 162 115 (85) (127) (103) (16)

Gains (losses excluding FVTPL bonds 6 (2) (35) (71) 16 (41) 1 74 11 23 (108) 34 50 98 196 31 (48)

Positive (negative) impact of MYA on underwriting results 7 (37) (197) (58) 35 (10) (58) (92) (36) 42 (292) (160) (125) 97 92 34 (58)

Difference between expected return and discount rate on pension assets 8 (13) (14) (13) (12) (12) (12) (12) (12) (12) (40) (36) (48) (49) (45) (26) (30)

Integration and restructuring costs 9 (25) (13) (24) (31) (14) (8) (4) (14) (10) (62) (26) (57) (63) (57) (23) (10)

Amortization of intangible assets recognized in business combinations 10 (38) (39) (37) (34) (25) (24) (24) (26) (23) (114) (73) (107) (94) (67) (57) (49)

Underwriting results of exited lines 11 (12) (3) (8) (34) (15) (13) (4) (7) (3) (23) (32) (66) (29) (10) - -

Other non-operating costs 12 (2) (8) (5) (2) (5) (7) (5) (8) (7) (15) (17) (19) (22) (18) (12) (8)

Non-operating gains (losses) 13 (114) (130) (166) (109) (119) (62) 33 (44) (37) (410) (148) (257) (147) (36) (156) (219)

Other comprehensive income (loss)

Employee future benefits

Actuarial gains (losses) - pre-tax 14 (32) (213) 292 19 13 (85) (18) (127) 30 47 (90) (71) (25) (89) (35) 48

AFS securities

Net changes in unrealized gains (losses) - pre-tax 15 262 579 (997) 92 69 33 356 (360) 25 (156) 458 550 (408) 295 378 (339)

Reclassification of net losses (gains) - pre-tax 16 (29) (1) 83 (23) 33 (17) (27) 32 (11) 53 (11) (34) (60) (251) (105) 123

Cash flow hedges

Net changes in unrealized gains (losses) - pre-tax 17 - - - - - - - - - - - - - (200) 1 (1)

Reclassification of net losses (gains) - pre-tax 18 - - - - - - - - - - - - - 200 - -

Foreign exchange gains (losses) on:

Translation of foreign operations 19 (90) (172) 365 (92) 47 (85) (87) 223 (69) 103 (125) (217) 352 - - -

Net investment hedges 20 52 93 (199) 42 (27) 40 42 (103) 31 (54) 55 97 (176) (12) - -

Other 21 (1) 1 (5) - 1 2 4 (5) (6) (5) 7 7 (5) 5 3 (3)

Income tax benefit (expense) 22 (53) (83) 162 (23) (28) 24 (74) 122 (11) 26 (78) (101) 129 12 (56) 41

Other comprehensive income (loss) 23 109 204 (299) 15 108 (88) 196 (218) (11) 14 216 231 (193) (40) 186 (131)

201820192020

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4

UNDERWRITING RESULTS

(in millions of Canadian dollars, except as otherwise noted - unaudited) 2020 2019 2019 2018 2017 2016 2015


Direct premiums written (DPW)P&C Canada 1 2,724 2,896 2,125 2,328 2,491 2,727 1,853 2,067 2,239 7,745 7,071 9,399 8,601 8,423 8,277 7,901

P&C U.S. 2 540 486 396 342 521 425 362 325 469 1,422 1,308 1,650 1,489 307 - -

Total 3 3,264 3,382 2,521 2,670 3,012 3,152 2,215 2,392 2,708 9,167 8,379 11,049 10,090 8,730 8,277 7,901

By business segment

P&C Canada 4 83% 86% 84% 87% 83% 87% 84% 86% 83% 84% 84% 85% 85% 96% 100% 100%

P&C U.S. 5 17% 14% 16% 13% 17% 13% 16% 14% 17% 16% 16% 15% 15% 4% 0% 0%

Total 6 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

By line of business

Personal auto 7 37% 37% 35% 35% 37% 38% 36% 34% 37% 36% 37% 37% 37% 44% 46% 45%

Personal property 8 22% 22% 19% 21% 22% 22% 20% 22% 23% 21% 21% 21% 22% 24% 25% 24%

Commercial lines - Canada 9 24% 27% 30% 31% 24% 27% 28% 30% 23% 27% 26% 27% 26% 28% 29% 31%

Commercial lines - U.S. 10 17% 14% 16% 13% 17% 13% 16% 14% 17% 16% 16% 15% 15% 4% 0% 0%

Total 11 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

By distribution channel

Brokers 12 86% 84% 88% 87% 86% 85% 87% 87% 86% 86% 86% 86% 86% 85% 85% 86%

Direct-to-consumer 13 14% 14% 12% 13% 14% 15% 13% 13% 14% 14% 14% 14% 14% 15% 15% 14%

Total 14 100% 98% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Net premiums written (NPW)P&C Canada 15 2,644 2,850 2,064 2,285 2,426 2,701 1,829 2,023 2,189 7,558 6,956 9,241 8,437 8,254 8,048 7,761

P&C U.S. 16 501 440 351 295 490 390 334 286 432 1,292 1,214 1,509 1,362 266 - -

Total 17 3,145 3,290 2,415 2,580 2,916 3,091 2,163 2,309 2,621 8,850 8,170 10,750 9,799 8,520 8,048 7,761

Underwriting results

Net earned premiums 18 2,863 2,712 2,766 2,692 2,581 2,500 2,438 2,509 2,462 8,341 7,519 10,211 9,715 8,530 7,946 7,535 Current year claims (excl. catastrophes and PYD) 19 1,598 1,407 1,674 1,607 1,587 1,543 1,643 1,567 1,503 4,679 4,773 6,380 6,197 5,504 5,165 4,976

Current year catastrophe claims (excluding reinstatement premiums) 20 24 124 137 115 53 70 128 55 97 285 251 366 330 313 385 116

(Favourable) unfavourable PYD 21 (17) (3) (52) (39) (11) 64 (14) (50) (28) (72) 39 - (185) (238) (389) (477)

Total net claims 22 1,605 1,528 1,759 1,683 1,629 1,677 1,757 1,572 1,572 4,892 5,063 6,746 6,342 5,579 5,161 4,615

Commissions 23 490 451 440 400 397 398 368 372 388 1,381 1,163 1,563 1,494 1,305 1,292 1,231

General expenses 24 296 353 310 292 265 264 270 272 261 959 799 1,091 1,063 851 831 799

Premium taxes 25 103 96 98 88 92 86 80 83 89 297 258 346 342 309 287 262

Total underwriting expenses 26 889 900 848 780 754 748 718 727 738 2,637 2,220 3,000 2,899 2,465 2,410 2,292

Underwriting income (loss) 27 369 284 159 229 198 75 (37) 210 152 812 236 465 474 486 375 628

Underwriting ratios

Underlying current year loss ratio 28 55.8% 51.9% 60.4% 59.7% 61.5% 61.7% 67.4% 62.5% 61.0% 56.1% 63.5% 62.4% 63.8% 64.5% 64.8% 66.1%

CAT loss ratio (including reinstatement premiums) 29 0.9% 4.5% 5.1% 4.3% 2.0% 2.8% 5.2% 2.2% 3.9% 3.5% 3.3% 3.6% 3.4% 3.7% 5.0% 1.5%

(Favourable) unfavourable PYD ratio 30 (0.6)% (0.1)% (1.9)% (1.4)% (0.4)% 2.6% (0.6)% (2.0)% (1.1)% (0.9)% 0.5% 0.0% (1.9)% (2.8)% (4.9)% (6.3)%

Claims ratio 31 56.1% 56.3% 63.6% 62.6% 63.1% 67.1% 72.0% 62.7% 63.8% 58.7% 67.3% 66.0% 65.3% 65.4% 64.9% 61.3%

Commissions 32 17.1% 16.6% 15.9% 14.9% 15.3% 16.0% 15.1% 14.8% 15.8% 16.5% 15.5% 15.3% 15.4% 15.3% 16.3% 16.3%

General expenses 33 10.3% 13.0% 11.2% 10.8% 10.3% 10.5% 11.1% 10.9% 10.6% 11.5% 10.6% 10.7% 10.9% 10.0% 10.5% 10.6%

Premium taxes 34 3.6% 3.6% 3.6% 3.2% 3.6% 3.4% 3.3% 3.3% 3.6% 3.6% 3.4% 3.4% 3.5% 3.6% 3.6% 3.5%

Expense ratio 35 31.0% 33.2% 30.7% 28.9% 29.2% 29.9% 29.5% 29.0% 30.0% 31.6% 29.5% 29.4% 29.8% 28.9% 30.4% 30.4%

Combined ratio 36 87.1% 89.5% 94.3% 91.5% 92.3% 97.0% 101.5% 91.7% 93.8% 90.3% 96.8% 95.4% 95.1% 94.3% 95.3% 91.7%

By business segment

P&C Canada 37 86.0% 89.0% 93.3% 92.0% 91.8% 97.4% 102.9% 90.8% 93.9% 89.4% 97.2% 95.9% 95.2% 94.2% 95.3% 91.7%

P&C U.S. 38 94.5% 93.2% 100.1% 88.8% 95.9% 94.8% 94.0% 96.7% 93.5% 96.0% 94.9% 93.2% 94.8% 97.4% - -

By line of business

Personal auto 39 84.9% 84.7% 94.6% 96.5% 93.4% 99.5% 101.9% 97.3% 99.0% 88.0% 98.2% 97.7% 99.5% 101.7% 99.9% 95.4%

Personal property 40 83.7% 88.6% 81.8% 82.0% 89.1% 99.6% 99.8% 78.5% 83.8% 84.7% 96.1% 92.5% 88.3% 89.1% 90.9% 85.9%

Commercial lines - Canada 41 89.4% 95.1% 100.7% 93.5% 91.8% 92.8% 106.7% 91.6% 94.9% 95.0% 96.8% 96.0% 94.6% 86.5% 91.5% 90.3%

Commercial lines - U.S. 42 94.5% 93.2% 100.1% 88.8% 95.9% 94.8% 94.0% 96.7% 93.5% 96.0% 94.9% 93.2% 94.8% 97.4% - -

2020 2019 2018

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5

CANADA



Direct premiums written (DPW)


Growth YOY 2 9.4% 6.2% 14.7% 12.6% 11.3% 7.7% 5.2% 4.1% 1.6% 9.5% 8.2% 9.3% 2.1% 1.8% 4.8% 6.2%

By geography

Ontario 3 41% 38% 41% 40% 40% 38% 39% 38% 40% 40% 39% 39% 39% 40% 41% 41%

Québec 4 30% 32% 29% 30% 29% 32% 28% 30% 29% 30% 30% 30% 29% 28% 27% 28%

Alberta 5 15% 16% 16% 16% 16% 16% 18% 17% 16% 16% 17% 17% 17% 18% 18% 18%

Rest of Canada 6 14% 14% 14% 14% 15% 14% 15% 15% 15% 14% 14% 14% 15% 14% 14% 13%

Total 7 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

DPW growth

By line of business

Personal auto 8 7.8% 3.2% 10.8% 15.0% 12.2% 5.9% 0.5% (0.7)% (2.4)% 6.8% 6.6% 8.5% (1.8)% 0.7% 5.6% 6.5%



Net premiums written (NPW)

By line of business

Personal auto 11 1,187 1,260 897 938 1,092 1,206 805 808 986 3,344 3,103 4,041 3,718 3,803 3,752 3,617

Personal property 12 701 735 474 551 638 667 423 502 590 1,910 1,728 2,279 2,125 2,080 1,952 1,804

Commercial lines - Canada 13 756 855 693 796 696 828 601 713 613 2,304 2,125 2,921 2,594 2,371 2,344 2,340

Underwriting results

Net earned premiums 14 2,479 2,330 2,378 2,302 2,234 2,155 2,084 2,129 2,114 7,187 6,473 8,775 8,332 8,204 7,946 7,535

Current year claims (excluding catastrophes and PYD) 15 1,378 1,206 1,473 1,399 1,386 1,345 1,447 1,356 1,305 4,057 4,178 5,577 5,411 5,321 5,165 4,976

Current year catastrophes claims (excluding reinstatement premiums) 16 24 116 94 111 53 70 128 33 97 234 251 362 308 313 385 116

(Favourable) unfavourable PYD 17 (9) 1 (44) (32) (9) 70 (18) (56) (20) (52) 43 11 (181) (253) (389) (477)

Total net claims 18 1,393 1,323 1,523 1,478 1,430 1,485 1,557 1,333 1,382 4,239 4,472 5,950 5,538 5,381 5,161 4,615

Total underwriting expenses 19 739 750 697 640 621 615 586 600 603 2,186 1,822 2,462 2,394 2,345 2,410 2,292




(Favourable) unfavourable PYD ratio 23 (0.4)% 0.0% (1.9)% (1.4)% (0.4)% 3.2% (0.9)% (2.7)% (0.9)% (0.7)% 0.7% 0.1% (2.2)% (3.1)% (4.9)% (6.3)%

Claims ratio 24 56.2% 56.8% 64.0% 64.2% 64.0% 68.9% 74.8% 62.6% 65.4% 59.0% 69.1% 67.8% 66.5% 65.6% 64.9% 61.3%

Commissions 25 17.2% 16.7% 15.9% 14.9% 15.4% 15.4% 15.1% 14.9% 15.7% 16.6% 15.2% 15.3% 15.3% 15.2% 16.3% 16.3%

General expenses 26 8.9% 11.8% 9.7% 9.4% 8.7% 9.4% 9.4% 9.6% 9.1% 10.1% 9.2% 9.2% 9.6% 9.7% 10.5% 10.6%

Premium taxes 27 3.7% 3.7% 3.7% 3.5% 3.7% 3.7% 3.6% 3.7% 3.7% 3.7% 3.7% 3.6% 3.8% 3.7% 3.6% 3.5%

Expense ratio 28 29.8% 32.2% 29.3% 27.8% 27.8% 28.5% 28.1% 28.2% 28.5% 30.4% 28.1% 28.1% 28.7% 28.6% 30.4% 30.4%

Combined ratio 29 86.0% 89.0% 93.3% 92.0% 91.8% 97.4% 102.9% 90.8% 93.9% 89.4% 97.2% 95.9% 95.2% 94.2% 95.3% 91.7%

Pre-tax operating income (PTOI)

PTOI - P&C Canada 30 347 257 158 184 183 55 (59) 196 129 762 179 363 400 478 375 628

Distribution EBITA and Other 31 81 78 44 45 56 72 36 42 41 203 164 209 175 158 134 123

Finance costs 32 (2) (3) (3) (2) (3) (2) (3) (3) (2) (8) (8) (10) (11) (9) (10) (7)

PTOI 33 426 332 199 227 236 125 (26) 235 168 957 335 562 564 627 499 744

201820192020

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6

PERSONAL LINES



Personal lines


Growth YOY 2 8.7% 5.9% 11.2% 12.9% 10.6% 6.0% 1.6% 0.5% (0.6)% 8.2% 6.4% 7.9% (0.3)% 2.3% 6.7% 7.2%

Policies in force (in '000)13 5,473 5,388 5,371 5,144 5,123 5,085 5,073 5,118 5,172 5,473 5,123 5,144 5,118 5,254 5,328 5,070

Growth YOY 4 6.8% 6.0% 5.9% 0.5% (0.9)% (2.5)% (3.2)% (2.6)% (2.0)% 6.8% (0.9)% 0.5% (2.6)% (1.4)% 5.1% 7.9%


Combined ratio 6 84.5% 86.1% 90.0% 91.3% 91.8% 99.6% 101.2% 90.5% 93.5% 86.8% 97.4% 95.8% 95.5% 97.3% 96.9% 92.3%

Personal auto

Direct premiums written 7 1,214 1,242 882 941 1,126 1,204 796 818 1,003 3,338 3,126 4,067 3,750 3,818 3,792 3,591

Growth YOY 8 7.8% 3.2% 10.8% 15.0% 12.2% 5.9% 0.5% (0.7)% (2.4)% 6.8% 6.6% 8.5% (1.8)% 0.7% 5.6% 6.5%


Growth YOY 10 3.9% 2.6% 2.2% (0.4)% (2.1)% (3.9)% (4.6)% (3.6)% (2.7)% 3.9% (2.1)% (0.4)% (3.6)% (1.7)% 5.3% 9.8%

Written insured risks (in '000) 11 1,175 1,312 851 886 1,108 1,310 846 866 1,087 3,338 3,264 4,150 4,159 4,319 4,358 4,159

Growth YOY 12 6.0% 0.2% 0.6% 2.3% 1.9% (0.6)% (4.7)% (5.6)% (4.6)% 2.3% (0.9)% (0.2)% (3.7)% (0.9)% 4.8% 6.6%

Net earned premiums 13 1,081 990 1,029 1,007 962 939 910 934 939 3,100 2,811 3,818 3,727 3,782 3,704 3,508

Growth YOY 14 12.4% 5.4% 13.1% 7.8% 2.4% 0.4% (1.0)% (1.9)% (2.4)% 10.3% 0.6% 2.4% (1.5)% 2.1% 5.6% 3.6%

Total net claims 15 661 573 727 743 688 723 722 698 715 1,961 2,133 2,876 2,857 2,978 2,794 2,468

Total underwriting expenses 16 257 265 246 229 211 212 205 211 214 768 628 857 852 868 905 879

Underwriting income (loss) 17 163 152 56 35 64 4 (17) 26 10 371 51 86 19 (64) 5 161

Impact of MYA on underwriting results (non-operating) 18 (17) (89) (34) 18 (1) (25) (47) (22) 23 (140) (73) (55) 42 54 21 (36)



(Favourable) unfavourable PYD ratio 21 0.0% 0.8% (0.3)% 0.0% (0.1)% 9.9% 2.2% 0.3% 1.9% 0.1% 4.0% 2.9% 1.3% 0.3% (3.1)% (6.1)%

Claims ratio 22 61.1% 58.0% 70.7% 73.8% 71.5% 77.1% 79.2% 74.7% 76.3% 63.2% 75.9% 75.3% 76.6% 78.7% 75.4% 70.4%

Expense ratio 23 23.8% 26.7% 23.9% 22.7% 21.9% 22.4% 22.7% 22.6% 22.7% 24.8% 22.3% 22.4% 22.9% 23.0% 24.5% 25.0%

Combined ratio 24 84.9% 84.7% 94.6% 96.5% 93.4% 99.5% 101.9% 97.3% 99.0% 88.0% 98.2% 97.7% 99.5% 101.7% 99.9% 95.4%

Personal property

Direct premiums written 25 719 753 491 566 653 679 439 517 606 1,963 1,771 2,337 2,186 2,135 2,030 1,864

Growth YOY 26 10.1% 10.9% 11.8% 9.5% 8.0% 6.4% 3.7% 2.5% 2.4% 10.8% 6.3% 6.9% 2.4% 5.2% 8.9% 8.6%


Growth YOY 28 10.6% 10.4% 10.7% 1.7% 0.7% (0.6)% (1.1)% (1.2)% (1.1)% 10.6% 0.7% 1.7% (1.2)% (0.9)% 4.8% 5.4%

Written insured risks (in '000) 29 702 724 475 562 677 704 461 547 658 1,901 1,842 2,404 2,364 2,395 2,381 2,294

Growth YOY 30 3.7% 2.8% 3.0% 2.7% 2.9% 1.4% (0.9)% (1.6)% (1.3)% 3.2% 1.4% 1.7% (1.3)% 0.3% 3.8% 4.7%

Net earned premiums 31 620 601 593 566 555 537 526 534 531 1,814 1,618 2,184 2,098 2,040 1,880 1,736

Growth YOY 32 11.7% 11.9% 12.7% 6.0% 4.5% 3.1% 2.7% 2.3% (2.7)% 12.1% 3.5% 4.1% 2.8% 8.5% 8.3% 7.4%

Total net claims 33 314 325 292 284 323 363 363 248 276 931 1,050 1,333 1,173 1,159 1,049 900


Underwriting income (loss) 35 101 69 107 102 60 2 1 115 85 277 63 165 246 222 170 244

Impact of MYA on underwriting results (non-operating) 36 (2) (5) (2) 2 - (2) (3) (1) 1 (9) (5) (3) 2 3 1 (2)



(Favourable) unfavourable PYD ratio 39 (0.3)% (1.0)% (3.8)% (1.8)% (1.3)% (0.6)% (3.1)% (2.9)% (3.0)% (1.7)% (1.6)% (1.7)% (3.7)% (3.0)% (4.7)% (4.0)%

Claims ratio 40 50.7% 54.1% 49.0% 50.2% 58.2% 67.5% 69.1% 46.3% 51.8% 51.3% 64.8% 61.0% 55.9% 56.8% 55.8% 51.8%

Expense ratio 41 33.0% 34.5% 32.8% 31.8% 30.9% 32.1% 30.8% 32.2% 32.0% 33.4% 31.3% 31.5% 32.4% 32.3% 35.1% 34.1%

Combined ratio 42 83.7% 88.6% 81.8% 82.0% 89.1% 99.6% 99.8% 78.5% 83.8% 84.7% 96.1% 92.5% 88.3% 89.1% 90.9% 85.9%

1 Include the policies in force of The Guarantee starting in Q1-2020.

2020 2019 2018

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7

COMMERCIAL LINES(in millions of Canadian dollars, except as otherwise noted - unaudited) 2020 2019 2019 2018 2017 2016 2015


Commercial lines - Canada

Direct premiums written 1 791 901 752 821 712 844 618 732 630 2,444 2,174 2,995 2,665 2,470 2,455 2,446

Growth YOY 2 11.1% 6.8% 21.7% 12.2% 13.0% 11.3% 13.3% 11.4% 7.8% 12.4% 12.4% 12.4% 7.9% 0.6% 0.4% 4.0%

Commercial P&C 3 565 641 530 574 487 566 419 502 427 1,736 1,472 2,046 1,822 1,716 1,752 1,775

Growth YOY 4 16.0% 13.3% 26.5% 14.4% 13.9% 9.4% 11.4% 8.7% 5.8% 17.9% 11.4% 12.3% 6.2% (2.1)% (1.3)% 3.2%

Commercial auto 5 226 260 222 247 225 278 199 230 203 708 702 949 843 754 703 671

Growth YOY 6 0.4% (6.5)% 11.6% 7.2% 11.3% 15.3% 17.1% 17.9% 12.3% 0.9% 14.6% 12.5% 11.8% 7.2% 4.8% 6.1%

Net earned premiums 7 778 739 756 729 717 679 648 661 644 2,273 2,044 2,773 2,507 2,382 2,362 2,291

Growth YOY 8 8.5% 8.8% 16.7% 10.3% 11.3% 10.8% 10.0% 10.2% 6.8% 11.2% 10.7% 10.6% 5.2% 0.8% 3.1% 4.0%

Total net claims 9 419 425 504 451 419 398 473 388 391 1,348 1,290 1,741 1,509 1,244 1,318 1,247


Underwriting income (loss) 11 83 36 (5) 47 59 49 (43) 55 34 114 65 112 135 320 200 223

Impact of MYA on underwriting results (non-operating) 12 (13) (74) (28) 11 (3) (16) (31) (11) 14 (115) (50) (39) 27 31 12 (20)



(Favourable) unfavourable PYD ratio 15 (0.8)% (0.2)% (2.4)% (2.9)% (0.1)% (3.0)% (3.3)% (6.7)% (3.2)% (1.1)% (2.1)% (2.3)% (6.0)% (8.4)% (7.9)% (8.5)%

Claims ratio 16 53.8% 57.5% 66.7% 61.8% 58.5% 58.6% 73.0% 58.7% 60.8% 59.3% 63.1% 62.8% 60.2% 52.2% 55.8% 54.4%

Expense ratio 17 35.6% 37.6% 34.0% 31.7% 33.3% 34.2% 33.7% 32.9% 34.1% 35.7% 33.7% 33.2% 34.4% 34.3% 35.7% 35.9%

Combined ratio 18 89.4% 95.1% 100.7% 93.5% 91.8% 92.8% 106.7% 91.6% 94.9% 95.0% 96.8% 96.0% 94.6% 86.5% 91.5% 90.3%

Commercial lines - U.S.

Underwriting results in Canadian dollars Note 1

Direct premiums written 19 540 486 396 342 521 425 362 325 469 1,422 1,308 1,650 1,489 307

Growth YOY 20 3.6% 14.4% 9.4% 5.2% 11.1% 13.6% 12.8% 5.9% n/a 8.7% 12.4% 10.8% n/a n/a

Net earned premiums 21 383 381 386 389 346 343 353 379 347 1,150 1,042 1,431 1,380 326

Growth YOY 22 10.7% 11.1% 9.3% 2.6% (0.3)% 0.9% 12.4% 16.3% n/a 10.4% 4.1% 3.7% n/a n/a

Underwriting income (loss) 23 21 26 (1) 44 14 18 21 13 22 46 53 97 71 8

Impact of MYA on underwriting results (non-operating) 24 (5) (29) 6 4 (6) (15) (11) (2) 4 (28) (32) (28) 26 5

Underlying current year loss ratio 25 57.3% 53.0% 51.6% 53.4% 58.1% 57.8% 55.5% 55.6% 57.0% 54.0% 57.1% 56.1% 56.9% 55.9%

CAT loss ratio (including reinstatement premiums) 26 0.0% 1.7% 11.7% 1.0% 0.0% 0.0% 0.0% 5.9% 0.0% 4.5% 0.0% 0.3% 1.6% 0.0%

(Favourable) unfavourable PYD ratio 27 (2.0)% (0.9)% (2.2)% (1.6)% (0.6)% (1.6)% 1.0% 1.5% (2.3)% (1.7)% (0.4)% (0.8)% (0.3)% 4.6%

Claims ratio 28 55.3% 53.8% 61.1% 52.8% 57.5% 56.2% 56.5% 63.0% 54.7% 56.8% 56.7% 55.6% 58.2% 60.5%

Commissions 29 16.8% 16.8% 16.0% 15.0% 15.5% 16.9% 15.6% 14.9% 16.3% 16.6% 16.0% 15.7% 15.5% 16.8%

General expenses 30 19.8% 20.3% 20.7% 19.2% 20.3% 20.1% 20.2% 17.8% 19.4% 20.2% 20.2% 20.0% 19.0% 18.2%

Premium taxes 31 2.6% 2.3% 2.3% 1.8% 2.6% 1.6% 1.7% 1.0% 3.1% 2.4% 2.0% 1.9% 2.1% 1.9%

Expense ratio 32 39.2% 39.4% 39.0% 36.0% 38.4% 38.6% 37.5% 33.7% 38.8% 39.2% 38.2% 37.6% 36.6% 36.9%

Combined ratio 33 94.5% 93.2% 100.1% 88.8% 95.9% 94.8% 94.0% 96.7% 93.5% 96.0% 94.9% 93.2% 94.8% 97.4%

Average exchange rate (CAD vs. USD) 34 1.33 1.39 1.34 1.32 1.32 1.34 1.33 1.32 1.31 1.35 1.33 1.33 1.30 1.27

Underwriting results in U.S. dollars

Direct premiums written 35 406 350 296 259 395 317 273 246 359 1,052 985 1,244 1,149 241

Growth YOY 36 2.8% 10.0% 8.6% 5.3% 9.9% 9.9% 7.1% 2.1% n/a 6.8% 9.1% 8.3% n/a n/a

Net earned premiums 37 287 275 287 295 261 257 265 287 266 849 783 1,078 1,064 256

Growth YOY 38 9.1% 6.5% 7.7% 2.7% (1.9)% (2.3)% 6.9% 12.1% n/a 8.4% 0.8% 1.3% n/a n/a

Total net claims 39 159 148 174 156 150 144 150 180 146 481 444 600 619 155

Total underwriting expenses 40 113 108 112 106 100 100 99 97 103 333 299 405 390 94

Underwriting income (loss) 41 15 19 1 33 11 13 16 10 17 35 40 73 55 7

Note 1: 2017 only includes Q4 results.

201820192020

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8

NET CATASTROPHES BY LINE OF BUSINESS (in millions of Canadian dollars, except as otherwise noted - unaudited) 2020 2019 2019 2018 2017 2016 2015


Net catastrophe claims (excluding reinstatement premiums)

Current year catastrophes claims

Personal auto 1 2 34 1 9 13 3 1 - 18 37 17 26 26 27 73 37

Personal property 2 11 51 15 48 23 49 76 11 31 77 148 196 159 210 210 42

Commercial lines - Canada 3 11 31 78 54 17 18 51 22 48 120 86 140 123 76 102 37

Commercial lines - U.S. 4 - 8 43 4 - - - 22 - 51 - 4 22 - - -

Total 5 24 124 137 115 53 70 128 55 97 285 251 366 330 313 385 116

Unfavourable (favourable) prior year CAT claims development

Personal auto 6 (1) (1) (9) (1) - - (1) (2) (2) (11) (1) (2) (7) (23) (4) (3)

Personal property 7 (4) (5) (5) - 1 - 3 1 (9) (14) 4 4 (35) (20) (9) (17)

Commercial lines - Canada 8 (9) (6) 4 (2) (1) (3) (7) (5) (6) (11) (11) (13) (22) (19) (9) (20)

Commercial lines - U.S. 9 - - 1 - - - - - - 1 - - - - - -

Total 10 (14) (12) (9) (3) - (3) (5) (6) (17) (35) (8) (11) (64) (62) (22) (40)

Net catastrophes claims

Personal auto 11 1 33 (8) 8 13 3 - (2) 16 26 16 24 19 4 69 34

Personal property 12 7 46 10 48 24 49 79 12 22 63 152 200 124 190 201 25

Commercial lines - Canada 13 2 25 82 52 16 15 44 17 42 109 75 127 101 57 93 17

Commercial lines - U.S. 14 - 8 44 4 - - - 22 - 52 - 4 22 - - -

Total 15 10 112 128 112 53 67 123 49 80 250 243 355 266 251 363 76

Current year CAT loss ratio (including reinstatement premiums)

As a % of NEP

Personal auto 16 0.2% 3.5% 0.1% 0.8% 1.3% 0.4% 0.1% - 1.9% 1.2% 0.6% 0.7% 0.6% 0.7% 2.0% 1.1%



Commercial lines - U.S. 19 - 1.7% 11.7% 1.0% - - - 5.9% - 4.5% - 0.3% 1.6% - - -

Total 20 0.9% 4.5% 5.1% 4.3% 2.0% 2.8% 5.2% 2.2% 3.9% 3.5% 3.3% 3.6% 3.4% 3.7% 5.0% 1.5%

HISTORICAL PRIOR YEAR CLAIMS DEVELOPMENT(in millions of Canadian dollars, except as otherwise noted - unaudited) 2020 2019 2019 2018 2017 2016 2015

# Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 YTD YTD annual Annual Annual Annual Annual

By line of business

P&C Canada

Personal auto 21 - 8 (3) - (1) 93 20 3 18 5 112 112 49 10 (115) (212)

Personal property 22 (2) (6) (23) (11) (7) (3) (16) (15) (16) (31) (26) (37) (78) (62) (88) (70)

Commercial lines - Canada 23 (7) (1) (18) (21) (1) (20) (22) (44) (22) (26) (43) (64) (152) (201) (186) (195)

Total 24 (9) 1 (44) (32) (9) 70 (18) (56) (20) (52) 43 11 (181) (253) (389) (477)

P&C U.S. 25 (8) (4) (8) (7) (2) (6) 4 6 (8) (20) (4) (11) (4) 15 - -

Total (favourable) unfavourable development 26 (17) (3) (52) (39) (11) 64 (14) (50) (28) (72) 39 - (185) (238) (389) (477)

Annualized (favourable) unfavourable development (as a % of opening reserves)P&C Canada 27 (0.4)% 0.1% (1.9)% (1.6)% (0.4)% 3.4% (0.9)% (2.8)% (0.9)% (0.8)% 0.7% 0.1% (2.3)% (3.2)% (5.0)% (6.2)%

P&C U.S. 28 (1.9)% (1.1)% (2.2)% (1.6)% (0.5)% (1.4)% 0.9% 1.5% (1.9)% (1.8)% (0.3)% (0.6)% (0.2)% 3.0% - -

Consolidated 29 (0.6)% (0.1)% (2.0)% (1.6)% (0.4)% 2.6% (0.6)% (2.1)% (1.1)% (0.9)% 0.5% - (1.9)% (1.9)% (5.0)% (6.2)%

2019

2019

2018

2018

2020

2020

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9

CORPORATE AND OTHER



Performance

Operating performance


Finance costs 2 (29) (29) (28) (26) (27) (28) (29) (27) (25) (86) (84) (110) (103) (82) (72) (64)

Underwriting income related to internal catastrophe reinsurance treaty 3 1 1 2 1 1 2 1 1 1 4 4 5 3 - - -

Other income (expense) 4 (16) (15) (8) (2) (15) (5) (1) (9) (5) (39) (21) (23) (30) (11) (5) (16)

PTOI 5 99 98 116 115 105 117 111 108 107 313 333 448 411 355 352 359

Net investment income

Interest income

Debt securities 6 84 84 85 87 86 88 87 87 82 253 261 348 324 251 242 255

Loans and others 7 3 6 8 6 7 6 7 7 7 17 20 26 27 24 23 26

Total 8 87 90 93 93 93 94 94 94 89 270 281 374 351 275 265 281

Dividend income

Preferred shares 9 19 18 19 16 16 16 14 16 14 56 46 62 60 61 61 54

Common shares 10 42 39 43 39 42 44 38 39 39 124 124 163 153 133 123 125

Total 11 61 57 62 55 58 60 52 55 53 180 170 225 213 194 184 179

Investment income, before expenses 12 148 147 155 148 151 154 146 149 142 450 451 599 564 469 449 460

Expenses 13 (5) (6) (5) (6) (5) (6) (6) (6) (6) (16) (17) (23) (23) (21) (20) (21)


Average net investments 15 18,936 18,312 18,135 17,616 17,259 17,089 16,863 16,623 16,601 18,461 17,070 17,207 16,442 14,663 13,396 12,974

Market-based yield (pre-tax) 16 3.16% 3.22% 3.43% 3.39% 3.51% 3.62% 3.48% 3.58% 3.44% 3.27% 3.54% 3.50% 3.44% 3.20% 3.36% 3.55%

Net gains (losses)

Realized and unrealized gains (losses) on:

AFS bonds, net of derivatives 17 4 20 9 4 8 1 1 (6) (5) 33 10 14 (26) 5 (1) 9

Equity securities, net of derivatives 18 (3) (39) (12) 23 (6) 4 5 (3) 32 (54) 3 26 127 123 66 4

Embedded derivatives 19 (22) (19) 39 (8) (3) 7 (1) 38 (7) (2) 3 (5) 25 (50) (13) 38

Net foreign currency gains (losses) 20 - - 11 - - - - - - 11 - - - 33 21 19

Impairment losses on:

Common shares 21 (3) - (96) (14) (44) (12) (6) (21) (4) (99) (62) (76) (47) (20) (41) (124)

Preferred shares 22 - - - - - - - - - - - - - - - (38)

Currency derivative gain related to book value hedge of OneBeacon 23 - - - - - - - - - - - - - 65 - -

Other gains (losses)¹ 24 22 3 (22) 11 4 1 75 3 7 3 80 91 19 40 (1) 44

Gains (losses) excluding FVTPL bonds 25 (2) (35) (71) 16 (41) 1 74 11 23 (108) 34 50 98 196 31 (48)

Realized and unrealized gains (losses) on FVTPL bonds 26 15 179 50 (47) 3 59 100 48 (47) 244 162 115 (85) (127) (103) (16)

Net gains (losses) 27 13 144 (21) (31) (38) 60 174 59 (24) 136 196 165 13 69 (72) (64)

¹ Include broker gains related to a change in control of $22 million in Q3-2020 and $72 million in Q1-2019 .

201820192020

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10

FINANCIAL POSITION(in millions of Canadian dollars, except as otherwise noted - unaudited) 2019 2018 2017 2016 2015

Refer to Important notes for the impact of recent acquisitions Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Annual Annual Annual Annual Annual

Balance sheet

Investments

Cash and cash equivalents 1 837 875 1,207 936 343 254 241 442 425 936 442 163 168 141

Debt securities 2 13,632 13,469 12,591 11,826 12,077 11,882 11,733 11,701 11,259 11,826 11,701 11,229 8,801 8,709

Preferred shares 3 1,472 1,294 1,098 1,465 1,133 1,181 1,177 1,165 1,342 1,465 1,165 1,330 1,377 1,235

Common shares 4 3,380 3,267 2,626 4,063 3,907 3,817 3,828 3,295 3,650 4,063 3,295 3,659 3,635 2,971

Loans 5 286 294 302 318 306 312 302 294 323 318 294 393 405 448

Total 6 19,607 19,199 17,824 18,608 17,766 17,446 17,281 16,897 16,999 18,608 16,897 16,774 14,386 13,504

Premium receivables 7 3,842 3,699 3,275 3,588 3,614 3,487 3,038 3,358 3,535 3,588 3,358 3,351 3,057 2,868

Reinsurance assets 8 1,522 1,586 1,631 1,511 958 927 888 864 811 1,511 864 822 482 274

Financial assets related to investments 9 242 82 636 106 135 143 71 139 112 106 139 34 21 64

Income taxes receivable 10 27 45 197 14 14 34 51 88 84 14 88 24 116 24

Deferred tax assets 11 160 131 90 175 143 167 153 141 102 175 141 124 142 146

Deferred acquisition costs 12 1,095 1,074 981 1,026 988 959 859 903 928 1,026 903 881 747 720

Other assets 13 963 858 1,014 862 693 647 667 702 710 862 702 669 528 658

Investments in associates and joint ventures 14 762 732 726 715 712 715 707 600 594 715 600 550 543 396

Property and equipment 15 531 534 545 538 495 503 511 170 153 538 170 164 139 104

Intangible assets 16 2,560 2,530 2,577 2,523 2,168 2,165 2,173 2,200 2,163 2,523 2,200 2,161 1,302 1,285

Goodwill 17 2,799 2,714 2,733 2,626 2,417 2,387 2,407 2,399 2,349 2,626 2,399 2,284 1,403 1,272

Total assets 18 34,110 33,184 32,229 32,292 30,103 29,580 28,806 28,461 28,540 32,292 28,461 27,838 22,866 21,315

Claims liabilities 19 12,750 12,571 12,275 11,846 11,118 10,951 10,868 10,623 10,622 11,846 10,623 10,475 8,536 8,094

Unearned premiums 20 6,398 6,151 5,662 5,960 5,867 5,568 5,067 5,412 5,611 5,960 5,412 5,365 4,573 4,390

Financial liabilities related to investments 21 157 213 382 295 448 458 412 289 308 295 289 167 529 378

Income taxes payable 22 35 29 16 150 68 16 19 15 22 150 15 262 10 101

Deferred tax liabilities 23 276 254 243 286 231 245 245 239 247 286 239 246 404 190

Other liabilities 24 2,803 2,551 2,355 2,646 2,271 2,177 1,979 1,864 1,655 2,646 1,864 1,619 1,333 1,295

Debt outstanding 25 2,476 2,524 2,725 2,362 1,945 2,192 2,200 2,209 2,189 2,362 2,209 2,241 1,393 1,143

Total liabilities 26 24,895 24,293 23,658 23,545 21,948 21,607 20,790 20,651 20,654 23,545 20,651 20,375 16,778 15,591

Common shares 27 3,265 3,265 3,265 3,265 2,816 2,816 2,816 2,816 2,816 3,265 2,816 2,816 2,082 2,090

Preferred shares 28 1,175 1,175 1,175 1,028 1,028 1,028 1,028 1,028 1,028 1,028 1,028 783 489 489

Contributed surplus 29 177 164 172 170 161 154 157 149 143 170 149 128 129 119

Retained earnings 30 4,294 4,115 4,149 3,959 3,826 3,750 3,765 3,776 3,733 3,959 3,776 3,520 3,197 3,047

Accumulated other comprehensive income (loss) (AOCI) 31 304 172 (190) 325 324 225 250 41 166 325 41 216 191 (21)

Shareholders' equity 32 9,215 8,891 8,571 8,747 8,155 7,973 8,016 7,810 7,886 8,747 7,810 7,463 6,088 5,724

Pre-tax net unrealized gains (losses) on AFS securities

Fixed-income securities 33 310 300 165 107 163 162 107 17 (38) 107 17 22 83 121

Preferred shares 34 (97) (218) (376) (64) (95) (104) (70) (83) 62 (64) (83) 43 (67) (111)

Common shares 35 44 (31) (294) 314 232 141 140 (85) 148 314 (85) 212 253 (12)

Total 36 257 51 (505) 357 300 199 177 (151) 172 357 (151) 277 269 (2)

Book value per share (in $)

Book value per share 37 56.22 53.95 51.71 53.97 51.20 49.90 50.21 48.73 49.27 53.97 48.73 48.00 42.72 39.83

Book value per share (excluding AOCI) 38 54.09 52.75 53.04 51.71 48.88 48.28 48.41 48.45 48.08 51.71 48.45 46.44 41.27 39.99

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11

INVESTMENT PORTFOLIO

(in millions of Canadian dollars, except as otherwise noted - unaudited)

Refer to Important notes for the impact of recent acquisitions #

Total portfolio

By class

Cash and cash equivalents 1 837 343 936 442 163 168 141

Short-term notes 2 64 27 61 19 217 105 210

Fixed-income securities 3 13,568 12,050 11,765 11,682 11,012 8,696 8,499

Preferred shares 4 1,472 1,133 1,465 1,165 1,330 1,377 1,235

Common shares 5 3,380 3,907 4,063 3,295 3,659 3,635 2,971

Loans 6 286 306 318 294 393 405 448

Total 7 19,607 17,766 18,608 16,897 16,774 14,386 13,504

By geography (country of incorporation)

Canada 8 71% 69% 71% 69% 71% 87% 87%

US 9 28% 29% 27% 29% 25% 11% 11%

Other 10 1% 2% 2% 2% 4% 2% 2%

Total 11 100% 100% 100% 100% 100% 100% 100%

Credit quality

Fixed-income securities

AAA 12 5,154 38% 5,073 42% 4,812 41% 5,028 43% 4,519 41% 3,957 46% 4,269 50%

AA 13 3,827 28% 3,541 30% 3,472 30% 3,643 31% 3,029 28% 3,100 36% 2,664 31%

A 14 3,047 23% 2,167 18% 2,275 19% 2,035 18% 2,346 21% 1,431 16% 1,502 18%

BBB 15 1,226 9% 1,012 8% 960 8% 806 7% 841 8% 174 2% 64 1%

BB and lower (including not rated) 16 314 2% 257 2% 246 2% 170 1% 277 2% 34 0% - 0%

Total 17 13,568 100% 12,050 100% 11,765 100% 11,682 100% 11,012 100% 8,696 100% 8,499 100%

Preferred shares

P1 18 4 0% - 0% 4 0% 3 0% 3 0% 3 0% 8 1%

P2 19 1,177 80% 966 85% 1,126 77% 978 84% 1,045 79% 1,090 79% 1,000 81%

P3 20 291 20% 167 15% 335 23% 184 16% 282 21% 284 21% 227 18%

Total 21 1,472 100% 1,133 100% 1,465 100% 1,165 100% 1,330 100% 1,377 100% 1,235 100%

Maturity


< 1 year 22 1,499 11% 1,067 9% 932 8% 1,060 9% 1,120 10% 890 10% 1,023 12%

1-5 years 23 6,526 48% 5,781 48% 5,668 48% 5,558 48% 5,782 53% 4,695 54% 4,286 51%

5-10 years 24 3,832 28% 3,834 32% 3,792 32% 3,836 33% 3,221 29% 3,016 35% 3,075 36%

Over 10 years 25 1,416 11% 1,111 9% 1,127 10% 1,058 9% 778 7% 61 1% 115 1%

No specific maturity 26 295 2% 257 2% 246 2% 170 1% 111 1% 34 0% - 0%

Total 27 13,568 100% 12,050 100% 11,765 100% 11,682 100% 11,012 100% 8,696 100% 8,499 100%

Sector


Corporate 28 5,298 39% 4,449 37% 4,346 37% 4,420 38% 3,992 36% 3,128 36% 3,334 39%

Canadian federal government and agency 29 2,474 18% 2,446 20% 2,295 20% 2,501 21% 2,757 25% 3,010 35% 3,073 36%

Canadian provincial and municipal 30 2,996 22% 2,452 20% 2,631 22% 2,236 19% 2,055 19% 2,089 24% 1,680 20%

U.S. government and agency 31 412 3% 305 3% 275 2% 309 3% 234 2% 99 1% - 0%

ABS and MBS¹ 32 2,048 15% 2,111 18% 1,943 17% 1,945 17% 1,702 15% 177 2% 250 3%

Supra-national and foreign 33 62 1% 30 0% 29 0% 101 1% 161 2% 159 2% 162 2%

Private placements 34 278 2% 257 2% 246 2% 170 1% 111 1% 34 0% - 0%

Total 35 13,568 100% 12,050 100% 11,765 100% 11,682 100% 11,012 100% 8,696 100% 8,499 100%

¹Asset-backed securities (ABS) and mortgage-backed securities (MBS)

2017

Annual

2016

Annual

2015

Annual

2020

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2019

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12

INVESTMENT PORTFOLIO (cont'd)

(in millions of Canadian dollars, except as otherwise noted - unaudited)

Refer to Important notes for the impact of recent acquisitions #

Net exposure: investment mix by asset class¹

Cash, cash equivalents and short-term notes 1 7% 3% 6% 3% 4% 3% 4%

Fixed income strategies 2 75% 75% 70% 75% 72% 70% 71%

Preferred shares 3 8% 6% 8% 7% 8% 10% 9%

Common equity strategies 4 9% 14% 14% 13% 14% 14% 13%

Loans 5 1% 2% 2% 2% 2% 3% 3%

Total 6 100% 100% 100% 100% 100% 100% 100%

Net exposure: sector mix by asset class¹


Government 7 44% 43% 44% 44% 47% 62% 58%

Financials 8 21% 21% 21% 22% 22% 26% 27%

ABS and MBS² 9 15% 18% 16% 17% 15% 2% 3%

Other sectors 10 20% 18% 19% 17% 16% 10% 12%

Total 11 100% 100% 100% 100% 100% 100% 100%

Common shares

Energy 12 11% 13% 14% 13% 15% 20% 19%

Financials 13 24% 26% 26% 24% 29% 16% 15%

Materials 14 5% 5% 5% 5% 6% 7% 8%

Communication services 15 8% 8% 8% 8% 6% 7% 8%

Consumer discretionary 16 6% 6% 6% 6% 8% 9% 9%

Consumer staples 17 12% 10% 10% 10% 8% 9% 10%

Industrials 18 10% 10% 10% 10% 11% 13% 12%

Utilities 19 13% 11% 11% 11% 7% 6% 8%

Information technology 20 4% 5% 4% 5% 6% 9% 7%

Health care 21 7% 6% 6% 8% 4% 4% 4%

Total 22 100% 100% 100% 100% 100% 100% 100%

Preferred shares

Financials 23 77% 80% 70% 77% 77% 76% 73%

Energy 24 12% 12% 14% 13% 12% 13% 15%

Utilities 25 10% 8% 14% 10% 11% 11% 12%

Communication services 26 1% 0% 2% 0% 0% 0% 0%

Total 27 100% 100% 100% 100% 100% 100% 100%

Total portfolio³

Government 28 33% 32% 31% 32% 33% 41% 40%

Financials 29 31% 30% 31% 31% 33% 36% 35%

Energy 30 3% 3% 4% 3% 4% 5% 5%

ABS and MBS² 31 11% 13% 11% 12% 11% 1% 2%

Other sectors 32 22% 22% 23% 22% 19% 17% 18%

Total 33 100% 100% 100% 100% 100% 100% 100%

Net exposure: by currency¹

Canadian dollar 34 84% 83% 81% 81% 79% 95% 95%

U.S. dollar 35 16% 16% 17% 17% 19% 5% 5%

Other 36 0% 1% 2% 2% 2% 0% 0%

Total 37 100% 100% 100% 100% 100% 100% 100%

1 Net of financial liabilities related to investments and hedging positions

² Asset-backed securities (ABS) and mortgage-backed securities (MBS)

³ Excluding cash, short-term notes and loans

2019

Q3

2020

Q3

2019

Annual

2017

Annual

20162018

Annual

2015

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13

CAPITAL MANAGEMENT AND RATING INFORMATION

(in millions of Canadian dollars, except as otherwise noted - unaudited) 2019 2018 2017 2016 2015

Refer to Important notes for the impact of recent acquisitions # Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Annual Annual Annual Annual Annual

Regulatory capital ratio and Total capital margin

Canadian regulated entities

Minimum capital test (MCT) 1 205% 200% 202% 198% 195% 191% 198% 201% 196% 198% 201% 205% 218% 203%

Capital above Company action level (CAL) 2 735 645 559 554 457 379 486 530 469 554 530 618 947 629

Other regulated/unregulated entities

Capital above CALs (capital margin) - other regulated entities13 633 684 557 630 616 616 617 505 534 630 505 497 - -

Unregulated entities 4 503 378 369 38 43 274 264 298 174 38 298 20 23 (4)

Total capital margin2

5 1,871 1,707 1,485 1,222 1,116 1,269 1,367 1,333 1,177 1,222 1,333 1,135 970 625

Rating information

IFC's principal Canadian P&C insurance subsidiaries

Senior unsecured debt ratings

A.M. Best 6 a- a- a- a- a- a- a- a- a- a- a- a- a- a-

Moody's 7 Baa1 Baa1 Baa1 Baa1 Baa1 Baa1 Baa1 Baa1 Baa1 Baa1 Baa1 Baa1 Baa1 Baa1

DBRS 8 A A A A A A A A A A A A A A

Fitch 9 A- A- A- A- A- A- A- A- A- A- A- A- A- A-

Financial strength ratings

A.M. Best 10 A+ A+ A+ A+ A+ A+ A+ A+ A+ A+ A+ A+ A+ A+

Moody's 11 A1 A1 A1 A1 A1 A1 A1 A1 A1 A1 A1 A1 A1 A1

DBRS 12 AA(low) AA(low) AA(low) AA(low) AA(low) AA(low) AA(low) AA(low) AA(low) AA(low) AA(low) AA(low) AA(low) AA(low)

Fitch 13 AA- AA- AA- AA- AA- AA- AA- AA- AA- AA- AA- AA- AA- AA-

IFC's principal U.S. P&C insurance subsidiary

Senior unsecured debt ratings

A.M. Best 14 a- a- a- a- a- a- a- bbb+ bbb+

Moody's 15 Baa2 Baa2 Baa2 Baa2 Baa2 Baa2 Baa2 Baa2 Baa2

Fitch 16 A- A- A- A- A- A- A- A- A-

Financial strength ratings

A.M. Best 17 A+ A+ A+ A+ A+ A+ A+ A A

Moody's 18 A2 A2 A2 A2 A2 A2 A2 A2 A2

Fitch 19 AA- AA- AA- AA- AA- AA- AA- AA- AA-

1 Other regulated entities include Atlantic Insurance Company, Split Rock Insurance, Ltd. (Bermuda) and IB Reinsurance Inc. (Barbados).

The Guarantee Company of North America USA was included in Other regulated entities starting in Q1 2020 and in Canadian regulated entities as at December 31, 2019.

2 Includes the aggregate of capital in excess of CALs in regulated entities plus available cash in unregulated entities. The CAL is 165% MCT for most Canadian insurance subsidiaries effective April 1, 2020 (previously CAL of 170% MCT)

and 200% RBC for U.S. insurance subsidiaries.

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14

SHAREHOLDER INFORMATION

(in millions of Canadian dollars, except as otherwise noted - unaudited) 2019 2018 2017 2016 2015


Number of shares outstanding (in '000)

Common shares

End of period 1 143,018 143,018 143,018 143,018 139,189 139,189 139,189 139,189 139,189 143,018 139,189 139,189 131,050 131,543

Weighted-average 2 143,018 143,018 143,018 140,437 139,189 139,189 139,189 139,189 139,189 139,503 139,189 133,129 131,237 131,543

Preferred shares 3 48,000 48,000 48,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 42,000 32,000 20,000 20,000

Common share performance

Common share price

High 4 147.01 143.10 157.65 140.96 133.97 124.32 114.13 107.69 109.17 140.96 109.17 109.33 97.34 96.77

Low 5 129.06 117.54 104.81 131.64 122.68 107.00 96.37 95.75 91.65 96.37 91.65 91.40 77.49 81.74

Close 6 142.58 129.21 121.63 140.42 133.34 121.02 113.08 99.19 107.40 140.42 99.19 104.99 96.10 88.68

Market capitalization 7 20,392 18,479 17,395 20,083 18,559 16,845 15,739 13,806 14,949 20,083 13,806 14,613 12,594 11,665

Dividends

Common shares

Dividends declared 8 119 118 119 109 108 106 106 98 97 429 390 351 304 279

Dividends paid per share (in $) 9 0.83 0.83 0.83 0.76 0.76 0.76 0.76 0.70 0.70 3.04 2.80 2.56 2.32 2.12

Growth YOY 10 9.2% 9.2% 9.2% 8.6% 8.6% 8.6% 8.6% 9.4% 9.4% 8.6% 9.4% 10.3% 9.4% 10.4%

Dividend yield (annualized) 11 2.3% 2.6% 2.7% 2.2% 2.3% 2.5% 2.7% 2.8% 2.6% 2.2% 2.8% 2.4% 2.4% 2.4%

Preferred shares

Dividends 12 13 14 12 11 12 11 11 11 13 45 40 27 20 21

Dividends paid per share (in $)

Series 1 13 0.2123 0.2123 0.2123 0.2123 0.2123 0.2123 0.2123 0.2123 0.2123 0.8490 0.8492 1.0500 1.0500 1.0500

Series 3 14 0.2083 0.2083 0.2083 0.2083 0.2083 0.2083 0.2083 0.2083 0.2083 0.8330 0.8332 0.8331 0.9958 1.0500

Series 4 (floating rate) 15 0.1832 0.2672 0.2680 0.2708 0.2739 0.2706 0.2696 0.2627 0.2495 1.0850 0.9687 0.8068 0.1993 -

Series 5 16 0.3250 0.3250 0.3250 0.3250 0.3250 0.3250 0.3250 0.3250 0.3250 1.3000 1.3000 0.7845 - -

Series 6 17 0.3313 0.3313 0.3313 0.3313 0.3313 0.3313 0.3313 0.3313 0.3313 1.3250 1.3252 0.4901 - -

Series 7 18 0.3063 0.3063 0.3063 0.3063 0.3063 0.3063 0.3063 0.3063 0.4162 1.2250 0.7225 - - -

Series 9 19 0.3375 0.4906 - - - - - - - - - - - -

Normal course issuer bid (NCIB) program

Common shares repurchased for cancellation (in '000) 20 - - - - - - - - - - - 71 493 -

Total value of common shares repurchased for cancellation 21 - - - - - - - - - - - 7 44 -

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15

P&C INSURANCE INDUSTRY(in millions of Canadian dollars, except as otherwise noted - unaudited) 2019 2018 2017 2016 2015


Canadian P&C insurance industry

DPW growth (including industry pools)

IFC 1 10.1% 15.0% 9.7% 8.5% 7.2% 6.2% 2.3% 1.5% 1.6% 9.7% 2.3% 2.1% 3.8% 6.1%

Industry benchmark 2 7.0% 10.6% 9.7% 9.1% 8.9% 9.0% 6.7% 5.8% 4.9% 9.7% 6.7% 4.5% 1.4% 2.7%

Outperformance (underperformance) 3 3.1% 4.4% 0.0% (0.6)% (1.6)% (2.8)% (4.4)% (4.3)% (3.2)% 0.0% (4.4)% (2.4)% 2.4% 3.4%

P&C industry 4 7.9% 12.0% 10.8% 10.0% 9.6% 9.8% 7.7% 7.0% 6.3% 10.8% 7.7% 5.0% 2.4% 3.3%

Outperformance (underperformance) 5 2.2% 3.0% (1.1)% (1.5)% (2.3)% (3.6)% (5.4)% (5.4)% (4.6)% (1.1)% (5.4)% (2.9)% 1.4% 2.8%

Combined ratio (including MYA)

IFC 6 96.7% 96.6% 97.5% 99.8% 103.6% 107.3% 95.0% 95.6% 97.1% 97.5% 95.0% 94.1% 95.2% 92.8%


Outperformance (underperformance) 8 6.6% 7.4% 3.6% 4.1% 1.9% 3.2% 8.3% 8.6% 8.0% 3.6% 8.3% 6.2% 4.7% 5.2%

P&C industry 9 103.9% 103.7% 100.1% 102.8% 104.4% 108.9% 102.1% 102.9% 103.7% 100.1% 102.1% 98.6% 99.6% 96.6%


ROE (for the last 12 months)

IFC¹ 11 12.0% 11.0% 11.4% 11.6% 12.1% 12.3% 11.8% 11.2% 11.3% 11.4% 11.8% 13.0% 11.0% 14.3%



P&C industry 14 5.1% 5.3% 5.6% 3.8% 3.8% 2.5% 2.8% 3.7% 4.0% 5.6% 2.8% 6.1% 5.2% 9.2%


¹IFC's ROE corresponds to the AROE, which excludes the after-tax impact of acquisition-related items

Industry data: IFC estimate based on MSA Research Inc.

Year-to-date results

2020

Industry benchmark generally consists of the 20 largest comparable companies in the P&C industry (as defined above). Our definition of industry benchmark evolves over time and reflects acquisitions and mergers in the P&C insurance industry.

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.

2018

P&C industry results exclude companies such as Lloyd’s Underwriters Canada, Insurance Corporation of British Columbia, Saskatchewan Government Insurance, Saskatchewan Auto Fund, Genworth Financial Mortgage Insurance Company Canada and

Canada Guaranty Mortgage Insurance Company. MSA data excludes certain Québec regulated entities.

2019

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16

RECONCILIATIONS TO FINANCIAL STATEMENTS(in millions of Canadian dollars, except as otherwise noted - unaudited) 2020 2019 2019 2018 2017 2016 2015


Direct premiums written (DPW)

As per Consolidated financial statements 1 3,267 3,389 2,557 2,696 2,996 3,119 2,208 2,377 2,684 9,213 8,323 11,019 10,125 8,748 8,197 7,893

Remove: impact of industry pools and fronting 2 (3) (26) (49) (39) (16) (38) (48) (31) (15) (78) (102) (141) (105) (19) 16 (55)

Remove: DPW of exited lines 3 (1) (1) (2) (10) (18) (1) - (2) (3) (4) (19) (29) (17) (18) - -

Add: Share of jointly held insurance operations 4 - - - - - - - - - - - - - 47 48

DPW (full term) 5 3,263 3,362 2,506 2,647 2,962 3,080 2,160 2,344 2,666 9,131 8,202 10,849 10,003 8,711 8,260 7,886

Add: Impact of normalization for multi-year policies 6 1 20 15 23 50 72 55 48 42 36 177 200 87 19 17 15

MD&A basis 7 3,264 3,382 2,521 2,670 3,012 3,152 2,215 2,392 2,708 9,167 8,379 11,049 10,090 8,730 8,277 7,901

Net earned premiums


Remove: NEP of exited lines 9 (1) - - (6) (23) (1) (2) (7) (9) (1) (26) (32) (50) (28) - -

Remove: NEP of The Guarantee included in Other income 10 - - - (32) - - (32)

Add: Share of jointly held insurance operations 11 - - - - - - - - - - - - - - 44 45

MD&A basis 12 2,863 2,712 2,766 2,692 2,581 2,500 2,438 2,509 2,462 8,341 7,519 10,211 9,715 8,530 7,946 7,535

Total net claims


Remove: Impact of MYA on underwriting results 14 (37) (197) (58) 35 (10) (58) (92) (36) 42 (292) (160) (125) 97 92 34 (58)

Remove: Difference between expected return and discount rate on pension assets 15 (4) (6) (5) (5) (5) (5) (5) (3) (6) (15) (15) (20) (20) (18) (10) (11)

Remove: Net claims of exited lines 16 (11) (2) (7) (37) (32) (13) (6) (13) (12) (20) (51) (88) (75) (33) - -

Add: Share of jointly held insurance operations 17 - - - - - - - - - - - - - 29 25

Remove: Net claims of The Guarantee included in Other income 18 - - - (10) - - - - - - - (10) - - - -

MD&A basis 19 1,605 1,528 1,759 1,683 1,629 1,677 1,757 1,572 1,572 4,892 5,063 6,746 6,342 5,579 5,161 4,615

Underwriting expenses

As per Consolidated financial statements 20 933 941 890 837 797 785 753 765 772 2,764 2,335 3,172 3,042 2,605 2,533 2,417

Remove: Difference between expected return and discount rate on pension assets 21 (9) (8) (8) (7) (7) (7) (7) (9) (6) (25) (21) (28) (29) (27) (16) (19)

Add: Other underwriting revenues 22 (34) (32) (33) (32) (30) (29) (28) (28) (28) (99) (87) (119) (110) (108) (123) (122)

Remove: Underwriting expenses of exited lines 23 (1) (1) (1) (3) (6) (1) - (1) - (3) (7) (10) (4) (5) - -

Add: Share of jointly held insurance operations 24 - - - - - - - - - - - - - - 16 16

Remove: Underwriting expenses of The Guarantee included in Other income 25 - - - (15) - - - - - - - (15) - - - -

MD&A basis 26 889 900 848 780 754 748 718 727 738 2,637 2,220 3,000 2,899 2,465 2,410 2,292

Underwriting income (loss)

As per Consolidated financial statements 27 307 70 80 225 161 (8) (145) 155 179 457 8 233 493 523 383 536

Remove: Difference between expected return and discount rate on pension assets 28 13 14 13 12 12 12 12 12 12 40 36 48 49 45 26 30

Remove: Impact of MYA on underwriting results 29 37 197 58 (35) 10 58 92 36 (42) 292 160 125 (97) (92) (34) 58

Remove: Underwriting results of exited lines 30 12 3 8 34 15 13 4 7 3 23 32 66 29 10 - -

Add: Share of jointly held insurance operations 31 - - - - - - - - - - - - - - - 4

Remove: Underwriting results of The Guarantee included in Other income 32 - - - (7) - - - - - - - (7) - - - -

MD&A basis 33 369 284 159 229 198 75 (37) 210 152 812 236 465 474 486 375 628

Finance costsAs per Consolidated financial statements 34 (29) (29) (28) (26) (27) (28) (29) (27) (25) (86) (84) (110) (103) (82) (72) (64)

Add: Share of finance costs of broker associates 35 (2) (3) (3) (2) (3) (2) (3) (3) (2) (8) (8) (10) (11) (9) (10) (7)

MD&A basis 36 (31) (32) (31) (28) (30) (30) (32) (30) (27) (94) (92) (120) (114) (91) (82) (71)

Income tax benefit (expense)As per Consolidated financial statements 37 (92) (54) (39) (34) (45) (22) 22 (67) (57) (185) (45) (79) (179) (150) (145) (169)

Add: Share of income tax expense of broker associates 38 (6) (9) (2) (3) (4) (8) (2) (1) (4) (17) (14) (17) (13) (12) (9) (9)

MD&A basis 39 (98) (63) (41) (37) (49) (30) 20 (68) (61) (202) (59) (96) (192) (162) (154) (178)

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17

RECONCILIATIONS OF NON-IFRS FINANCIAL MEASURES(in millions of Canadian dollars, except as otherwise noted - unaudited) 2020 2019 2019 2018 2017 2016 2015


ROE

Net income 1 334 263 107 240 187 168 159 244 199 704 514 754 707 792 541 706

Remove: preferred share dividends 2 (13) (14) (12) (11) (12) (11) (11) (11) (13) (39) (34) (45) (40) (27) (20) (21)

Net income attributable to common shareholders 3 321 249 95 229 175 157 148 233 186 665 480 709 667 765 521 685

Net income attributable to common shareholders - last 12 months 4 894 747 655 709 713 724 720 667 656 894 713 709 667 765 521 685

Average common shareholders' equity 5 7,772 7,403 7,113 7,057 6,993 6,858 6,788 6,731 6,670 7,772 6,993 7,057 6,731 5,961 5,417 5,103

ROE for the last 12 months 6 11.5% 10.1% 9.2% 10.0% 10.2% 10.6% 10.6% 9.9% 9.8% 11.5% 10.2% 10.0% 9.9% 12.8% 9.6% 13.4%

NOI, NOIPS and OROE

Net income 7 334 263 107 240 187 168 159 244 199 704 514 754 707 792 541 706

Remove: income tax expense (benefit) - as reported in the MD&A 8 98 63 41 37 49 30 (20) 68 61 202 59 96 192 162 154 178

Remove: non-operating losses (gains) 9 114 130 166 109 119 62 (33) 44 37 410 148 257 147 36 156 219

Pre-tax operating income 10 546 456 314 386 355 260 106 356 297 1,316 721 1,107 1,046 990 851 1,103

Operating income tax benefit (expense) 11 (135) (106) (71) (83) (78) (48) 7 (75) (60) (312) (119) (202) (207) (219) (191) (243)

NOI 12 411 350 243 303 277 212 113 281 237 1,004 602 905 839 771 660 860


NOI to common shareholders 14 398 336 231 292 265 201 102 270 224 965 568 860 799 744 640 839

Divided by weighted-average number of common shares (in millions) 15 143.0 143.0 143.0 140.4 139.2 139.2 139.2 139.2 139.2 143.0 139.2 139.5 139.2 133.1 131.2 131.5

NOIPS, basic and diluted (in $) 16 2.78 2.35 1.61 2.08 1.91 1.44 0.73 1.93 1.62 6.74 4.08 6.16 5.74 5.60 4.88 6.38

NOI to common shareholders - last 12 months 17 1,257 1,124 989 860 838 797 788 799 756 1,257 838 860 799 744 640 839

Average common shareholders' equity, excluding AOCI 18 7,458 7,205 7,083 6,874 6,778 6,646 6,601 6,603 6,525 7,458 6,778 6,874 6,603 5,758 5,332 5,041

OROE for the last 12 months 19 16.9% 15.6% 14.0% 12.5% 12.4% 12.0% 11.9% 12.1% 11.6% 16.9% 12.4% 12.5% 12.1% 12.9% 12.0% 16.6%

AEPS and AROE

Net income 20 334 263 107 240 187 168 159 244 199 704 514 754 707 792 541 706

Adjustments, net of tax

Remove: impact of amortiz. of intangibles recognized in business combinations 21 29 30 28 26 19 18 18 19 18 87 55 81 71 50 56 37

Remove: impact of integration and other acquisition-related costs 22 13 10 15 22 11 3 3 10 8 38 17 40 47 49 17 7

Remove: impact of interco foreign currency losses (gains) 23 - - - (6) - - - - - - - (6) - (62) - -

Remove: impact of deferred income tax benefit recognized 24 (3) (2) 5 (22) - - - - - - - (22) - - - -

Remove: impact from U.S. Corporate Tax reform 25 - - - - - - - - 9 - - - 9 (27) - -

Remove: impact of tax adjustments on prior year acquisition-related items 26 - 1 2 - - - - - - 3 - - - - - -

Adjusted net income 27 373 302 157 260 217 189 180 273 234 832 586 847 834 802 614 750


Adjusted net income attributable to common shareholders 29 360 288 145 249 205 178 169 262 221 793 552 802 794 775 594 729

Divided by weighted-average number of common shares (in millions) 30 143.0 143.0 143.0 140.4 139.2 139.2 139.2 139.2 139.2 143.0 139.2 139.5 139.2 133.1 131.2 131.5

AEPS, basic and diluted (in $) 31 2.52 2.01 1.01 1.77 1.47 1.28 1.22 1.88 1.59 5.54 3.97 5.75 5.70 5.82 4.53 5.54

Adjusted net income attributable to common shareholders - last 12 months 32 1,042 885 781 802 814 830 833 794 749 1,042 814 802 794 775 594 729

Average common shareholders' equity 33 7,772 7,403 7,113 7,057 6,993 6,858 6,788 6,731 6,670 7,772 6,993 7,057 6,731 5,961 5,417 5,103

AROE for the last 12 months 34 13.4% 12.0% 11.0% 11.4% 11.6% 12.1% 12.3% 11.8% 11.2% 13.4% 11.6% 11.4% 11.8% 13.0% 11.0% 14.3%

2020 2019 2018

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ENGLISH Stats Supplement Q3-2020 MASTER (clean - no ......CONSOLIDATED RESULTS (cont'd) (in millions...

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Transcript of ENGLISH Stats Supplement Q3-2020 MASTER (clean - no ......CONSOLIDATED RESULTS (cont'd) (in millions...