Intact Financial gets Sector Perform rating from RBC on strong execution

Published 18/06/2025, 09:36
Intact Financial gets Sector Perform rating from RBC on strong execution

RBC Capital initiated coverage on Intact Financial Corp (TSX:IFC:CN) (OTC:IFCZF) with a Sector Perform rating and a price target of C$329.00 on Wednesday.

The financial services firm cited Intact’s "solid long-term track record of strong execution, and defensive attributes" as factors driving the company’s currently elevated valuation, which RBC believes is warranted.

RBC Capital noted that Intact is a core holding for many investors and will likely remain so, but the firm is "waiting for a better entry point" before recommending the stock more aggressively.

The research firm highlighted Intact’s strong position for potential acquisitions, pointing to approximately $3 billion in excess capital, a 20% leverage ratio, and a track record of achieving roughly 20% internal rate of return on prior underwriting acquisitions.

RBC also mentioned that Definity’s recently announced acquisition of Travelers (NYSE:TRV) could serve as "a catalyst for continued underwriter consolidation," with Intact well positioned to be "on the offensive" in this consolidation trend.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.