Mr. Cristian Sieira reports

AM BEST AFFIRMS CREDIT RATINGS OF INTACT FINANCIAL CORPORATION AND SUBSIDIARIES

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 Corp. (IFC) (TSX: IFC), as well as the other subsidiaries of Intact Financial. Concurrently, AM Best has affirmed the long-term ICR of A- (excellent) and the long-term issue credit ratings (long-term IRs) of Intact Financial, the parent holding company. In addition, AM Best has affirmed the long-term ICR of A- (excellent) of Intact U.S. Holdings Inc. (Delaware). The outlook of these credit ratings (ratings) is stable. All companies are domiciled in Ontario, Canada, unless otherwise specified.

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

The very strong balance sheet strength assessment reflects Intact Financial's very strong level of risk-adjusted capitalization, as measured by Best's capital adequacy ratio (BCAR), and substantial surplus accumulation over the long term, which has been driven by capital raises (both debt and stock offerings) in support of acquisitions. Intact Financial's consistent net earnings, driven largely by favourable underwriting profitability, has also benefited the company's capital position. Intact Financial maintains financial leverage ratios consistent with AM Best's expectations with strong interest coverage ratios and the overall enterprise benefits from the financial flexibility afforded by Intact Financial with access to both Canadian and United States capital markets.

For the full year 2022, Intact Financial reported the largest level of earnings before interest and taxes (EBIT) of the recent five-year period, building upon a strong year in 2021. The increase in earnings has generally been driven by a considerable increase in underwriting income, which has been augmented by growth in investment income. Results have also benefited from favourable reserve development over the long term, which AM Best expects to continue going forward. IFC maintains favourable combined ratios in all of its major markets, which include Canada, the United States, the United Kingdom and Ireland.

Intact Financial's business profile is assessed as favourable, reflecting excellent geographic, product and channel diversification in both the independent broker channel and direct to consumer. Intact Financial 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. Canada is Intact's largest market, where it is a leading provider of personal auto, property and commercial lines coverage. The RSA acquisition in 2021 has expanded Intact's leadership position within Canada, and has provided Intact with entry into the United Kingdom, Ireland and international markets.

Intact Financial has a comprehensive ERM program in place which AM Best considers appropriate for the organization's size, scale and risk profile.

The FSR of A+ (superior) and the long-term ICRs of AA- (superior) have been affirmed with stable outlooks for the following members of Intact Financial:

• Atlantic Specialty Insurance Company;
• Belair Insurance Company Inc.;
• Homeland Insurance Company of New York;
• Homeland Insurance Company of Delaware;
• Intact Insuracnce Company;
• Jevco Insurane Company;
• Novex Insurance Company;
• OBI America Insurance Company;
• OBI National Insurance Company;
• Split Rock Insurance Ltd.;
• The Guarantee Company of North America USA;
• The Nordic Insurance Company of Canada;
• Trafalgar Insurance Company of Canada.

The following long-term IR has been assigned with a stable outlook:

Intact Financial:

• BBB (good) on $300-million, 7.338 per cent subordinated debentures, due June 30, 2083.

The following long-term IRs have been affirmed with stable outlooks:

Intact Financial

• A- (excellent) on $500-million, 5.459 per cent senior unsecured medium-term notes, due 2032;
• A- (excellent) on $250-million, Series 2, 6.40 per cent senior unsecured medium-term notes, due 2039;
• A- (excellent) on $100-million, Series 3, 6.2 per cent senior unsecured medium-term notes, due 2061;
• A- (excellent) on $250-million, Series 5, 5.16 per cent senior unsecured medium-term notes, due 2042;
• A- (excellent) on $250-million, Series 6, 3.77 per cent senior unsecured medium-term notes, due 2026;
• A- (excellent) on $425-million, Series 7, 2.85 per cent senior unsecured medium-term notes, due 2027;
• A- (excellent) on $300-million, Series 8, 3.691 per cent senior unsecured medium-term notes, due 2025;
• A- (excellent) on $300-million, Series 9, 1.928 per cent senior unsecured medium-term notes, due 2030;
• A- (excellent) on $300-million, Series 10, 2.954 per cent senior unsecured medium-term notes, due 2050;
• A- (excellent) on $375-million, Series 11, 1.207 per cent senior unsecured medium-term notes, due 2024;
• A- (excellent) on $375-million, Series 12, 2.179 per cent senior unsecured medium-term notes, due 2028;
• A- (excellent) on $250-million, Series 13, 3.765 per cent senior unsecured medium-term notes, due 2053;
• BBB (good) on $150-million, 5.25 per cent preferred shares;
• BBB+ (good) on $250-million, 4.125 per cent subordinated debentures, due 2081;
• BBB (good) on $250-million, 4.841 per cent non-cumulative five-year reset Class A Series 1 preferred shares;
• BBB (good) on $250-million, 3.457 per cent non-cumulative five-year rate reset Class A Series 3 preferred shares;
• BBB (good) on $150-million, 5.2 per cent non-cumulative fixed rate Class A Series 5 preferred shares;
• BBB (good) on $150-million, 5.3 per cent non-cumulative fixed rate Class A Series 6 preferred shares;
• BBB (good) on $250-million, 4.9 per cent non-cumulative five-year rate reset Class A Series 7 preferred shares;
• BBB (good) on $150-million, 5.4 per cent 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

• A- (excellent) on senior unsecured notes;
• BBB+ (good) on subordinated unsecured notes;
• BBB (good) on Class A preferred shares.