Mr. Cristian Sieira of AM Best reports

AM BEST AFFIRMS CREDIT RATINGS OF INTACT FINANCIAL CORPORATION AND ITS CORE SUBSIDIARIES

AM Best has affirmed the financial strength rating of A plus (superior) and the long-term issuer credit rating of AA minus (superior) of Intact Insurance Company, the lead company of Intact Financial Corp., as well as the core insurance subsidiaries of Intact Financial. Concurrently, AM Best has affirmed the long-term ICR of a minus (excellent) and the long-term issue credit ratings of Intact Financial, the parent holding company. In addition, AM Best has affirmed the long-term ICR of a minus (excellent) of Intact U.S. Holdings Inc. (Delaware), an intermediate holding company of Intact Financial. The outlook of these credit ratings is stable. All companies are domiciled in Ontario, Canada, unless otherwise specified.

The ratings reflect Intact Financial'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.

Intact Financial's balance sheet strength assessment is supported by its very strong risk-adjusted capitalization, as measured by Best's capital adequacy ratio, long-term capital growth and historically favourable reserve development trends. Furthermore, the balance sheet strength assessment reflects Intact Financial's favourable 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. Intact Financial's financial leverage ratios remain within AM Best guidelines and have improved through first quarter 2025, driven by favourable net earnings and repayment of debt through 2024. Over all, Intact Financial benefits from financial flexibility through access to Canadian and U.S. capital markets.

AM Best views Intact Financial's operating performance as strong driven by consistently favourable underwriting results through all geographic territories, which includes Canada, the United States, the United Kingdom and Ireland. Additionally, overall net earnings have also benefited from increasing net investment income. Despite Intact Financial's primary market of Canada having seen historical catastrophe activity over the recent five-year period, Intact Financial's results have remained favourable owing to its underwriting guidelines, market knowledge and geographic diversification. In the UK&I, Intact Financial'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 Intact Financial's personal lines exit in that market. AM Best notes that these strategic actions are expected to continue enhancing Intact Financial's operating performance further in the organization's UK&I business.

AM Best assesses Intact Financial's business profile as favourable, reflecting excellent geographic, product and channel diversifications in 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.

AM Best considers Intact Financial'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, part of Intact Financial'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 plus (superior) and the long-term ICRs of AA minus (superior) have been affirmed with stable outlooks for the following members of the Intact Financial:

• 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; and
• Trafalgar Insurance Company of Canada.

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

The following indicative long-term IRs under the shelf registration have been affirmed with stable outlooks.

Intact Financial:

• A minus (excellent) on senior unsecured notes;
• BBB plus (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.