#1INVESTOR PRESENTATION Intact Financial Corporation (TSX:IFC) August 2015 [intact]#2. Canada's P&C insurance leader Leader in a fragmented industry Largest P&C insurer in Canada Over $7 billion in direct premiums written #1 in British Columbia, Alberta, Ontario, Quebec and Nova Scotia $13.4 billion investment portfolio Distinct brands [intact] INSURANCE belairdirect. . Proven industry consolidator 2014 Direct premiums written ($ billions) 7.6 Top five insurers represent 47% of the market 4.0 4.0 BrokerLink 10-year outperformance IFC vs. P&C industry³ 3.0 3.0 Premium growth 5.1 pts Combined ratio4 3.4 pts IFC1 Aviva Canada Desjardins² TD Insurance RSA Canada Estimated Market Share Return on equity5 7.1 pts 16.9% 8.7% 8.7% 6.6% 6.6% 1 IFC direct premiums written in 2014 is pro forma including CDI 2 Desjardins direct premiums written in 2014 is pro forma including State Farm 3 Industry data: IFC estimates based on MSA Research excluding Lloyd's, ICBC, SGI, SAF, MPI, Genworth and IFC. All data as at December 31, 2014 4 Combined ratio includes the market yield adjustment (MYA) 5 ROES reflect IFRS beginning in 2010. Since 2011, IFC's ROE is adjusted return on common shareholders' equity (AROE) Intact Financial Corporation [2]#3Operational snapshot A strong and diversified base for growth 2014 DPW by Business Line 2014 DPW by Geography 2014 DPW by Distribution Channel 32% 18% 46% 22% Personal Auto ■Personal Property ■Commercial Lines Excluding pools, as of December 31, 2014 Intact Financial Corporation 13% 42% 27% 12% 7% 81% ■ Ontario ■ Quebec ■ Alberta ■Rest of Canada ■Intact Insurance ■BrokerLink Direct to consumer [3]#436-month performance roadmap Beat industry ROE by 5 points every year NOIPS growth of 10% per year over time 3 pts Claims management Organic growth 3-5% 2 pts Pricing & Segmentation Capital management/deployment Investments and Margin 2 pts 0-3% capital management improvement * Leaves 2 points to reinvest in customer experience (price, product, service, brand) Intact Financial Corporation 3-5% [4]#5Consistent outperformance Significant scale Sophisticated pricing and advantage underwriting In-house claims expertise Broker relationships Multi-channel distribution Proven acquisition strategy FY2014 outperformance (for the period ended December 31, 2014) ■Industry IFC 16.8% 99.4% 94.5% 8.6% Combined ratio ROE (annualized) Industry data: IFC estimates based on MSA Research excluding Lloyd's, ICBC, SGI, SAF, MPI, Genworth and IFC. Combined ratio includes market yield adjustment (MYA) IFC's ROE corresponds to the AROE Intact Financial Corporation 76.7% Solid investment returns Five-year average loss ratios (for the period ended December 31, 2014) ■Industry ■ IFC 68.5% 65.5% 61.0% 56.9% 54.7% Auto Personal Property Commercial P&C [5]#6Internally managed investments $13.4 billion investment portfolio Objective: 160 bps of ROE outperformance Investment mix (net of hedging positions and financial liabilities related to investments, as of June 30, 2015) Loans, 4% Cash and short- term notes, 4% Preferred shares, 9% 50% Active Management 50% Investment Policy Leverage the tax-free nature of dividends Common equity strategies, 13% Intact Financial Corporation Fixed-income strategies, 70% ROE from Investments (after-tax) * 9.1% 9.3% 7.7% 6.8% 6.7% 7.1% 5 Year 3 Year Industry IFC * As of December 31, 2014 1 Year [ 6 ]#7Strategic capital management Capital management framework Strong capital base has allowed us to pursue our growth objectives while returning capital to shareholders $564 million in total excess capital * Maintain leverage ratio (target 20% debt-to-total capital) Maintain existing dividends • Quarterly dividend per share History of dividend growth We have increased our dividend each year since our IPO 0.163 0.53 0.48 0.44 0.40 0.37 0.31 0.32 0.34 0.27 0.25 Increase dividends Invest in growth initiatives Share buybacks * As of June 30, 2015 Excess capital Intact Financial Corporation 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q3-15 . We believe we have organic growth opportunities within our multi-brand offering We have a track record of 15 accretive acquisitions, the most recent being AXA Canada, Jevco, Metro General and CDI [ 7 ]#8P&C industry 12-month outlook We remain well-positioned to continue outperforming the Canadian P&C insurance industry in the current environment Premium growth Underwriting Return on equity • • Industry premiums are likely to increase at a low single-digit rate, with slightly negative growth in personal auto, mid single-digit growth in commercial lines and upper single-digit growth in personal property expected We expect future premium reductions in Ontario auto will be commensurate with government cost reduction measures We expect the current hard market conditions in personal property to continue as the magnitude of recent catastrophe losses negatively impacts industry results We believe the impact of continued low interest rates and limited underwriting profitability at the industry level have translated into firmer conditions in commercial lines We expect the industry's combined ratio to continue to improve in 2015 from the recent peak above 100% in 2013, though the level of investment income is unlikely to improve We expect the industry's ROE to trend back toward its long-term average of 10% in 2015 We believe we will outperform the industry's ROE by at least 500 basis points in the next 12 months Intact Financial Corporation [ 8 ]#9Four avenues of growth Personal lines Build on outperformance in auto Hard market in personal property Commercial lines Leverage our industry outperformance, and acquired expertise and products, to gain share in a firming environment • Firming market conditions Develop existing platforms (0-2 years) (0-5 years) Consolidate Expand Capital • Strong financial position Canadian Strategy market beyond existing • Grow areas where IFC has a (0-5 years) markets (3-5 years) competitive advantage Opportunities • • P&C industry remains fragmented We expect 15-20% of market share will change hands in the next 5 years Intact Financial Corporation Bring advantages of scale to brokers • Optimize brand architecture • Double direct capabilities Grow operated distribution Build organic growth pipeline by leveraging our world-class strengths in: 1) pricing and segmentation, 2) claims management, and 3) online expertise [ 9 ]#10• Acquisition of Canadian Direct Background Announced February 10, 2015 $143 million in DPW Broadens direct presence for IFC Facilitates objective to double direct capabilities . Progress The transaction closed on May 1, 2015 and integration efforts are underway Targeting annual expense synergies of $10 million after-tax, and expect our run- rate to reach this level by mid-2017 IRR estimated above 15% Track record of strong underwriting results Acquisition of CDI adds meaningful presence in Western Canada 2014 IFC Direct Channel: $975M DPW* Direct Channel pro forma with CDI: $1.1B DPW* 30% 9%. 2% 59% 7% 8% 8% 51% 26%/ Ontario Quebec Atlantic Alberta ■B.C. * Includes Anthony Insurance and InnovAssur Intact Financial Corporation [10]#11Streamlining our brands Broker Channel Growth and innovation will be accelerated in 2015: Increase investments in advertising, technology and product development • Launch a new 50+ product for brokers and their customers • • Direct Channel Grey Power will be rebranded as belairdirect and the two operations will be united Customers of Grey Power and belairdirect will begin to benefit from new product and service offerings as a result of sharing between the two companies • CDI brand well-regarded in Western Canada CDI DPW = $143M [intact] INSURANCE DPW = $6.4 billion belairdirect. DPW = $662M GREY POWER DPW = $185M Intact Financial Corporation [11]#12Our people advantage Deep executive talent pool Executive Committee members have an average of 17 years experience with the organization in various roles We have identified approximately 5 successors for each Executive Committee position == == == Building the best team Identification, development and retention of key talent is fundamental to our talent management strategy In 2014, 32.1% of key talent were promoted or developed through lateral moves or secondments to new roles Voluntary turnover is significantly better than industry average* Becoming a best employer Employee engagement is the benchmark by which we measure our success – and our 4-point improvement in 2014 confirms we are on the right track Intact Financial Corporation * 2014 Mercer survey of 17 Canadian P&C insurance companies (GIHRG Index) [12]#13Key takeaways We have a sustainable competitive edge due to our disciplined approach and size advantage ✓ Our broad distribution platform positions us well for organic growth We have a strong financial position and a proven track record of consolidation Deep bench in place to ensure the sustainability of our performance Intact Financial Corporation [13]#14Appendix [intact]#15• • • • P&C insurance in Canada A $45 billion market representing approximately 3% of GDP Fragmented market: - - Top five represent 47%, versus bank/lifeco markets which are closer to 65-75% IFC is largest player with approx. 17% market share, versus largest bank/lifeco with 22-25% market share - P&C insurance shares the same regulator as the banks and lifecos Barriers to entry: scale, regulation, manufacturing capability, market knowledge Home and commercial insurance rates unregulated; personal auto rates regulated in some provinces Capital is regulated nationally by OSFI Brokers continue to own commercial lines and a large share of personal lines in Canada; direct-to- consumer channel is growing (distribution = brokers 65.1% and direct/agency 34.9%) Industry DPW by line of business Personal Property, 22% Personal Auto, 38% Commercial P&C and other, 33% Commercial Auto, 7% Industry - premiums by province Quebec,. 16% Alberta, 18% • Industry has grown at 6% CAGR and delivered ROE of approximately 10% over the last 30 years Industry data: IFC estimates based on IBC and MSA Research excluding Lloyd's, ICBC, SAF, SGI, MPI and Genworth. Data as at the end of 2014. OSFI = Office of the Superintendent of Financial Institutions Canada Intact Financial Corporation Ontario, 47% Other provinces and territories, 19% [15]#16P&C industry 10-year performance versus IFC IFC's competitive advantages Sophisticated pricing and underwriting 105% 103% • Significant scale advantage 101% 99% discipline 97% • In-house claims expertise 95% 93% • Broker relationships 91% • Solid investment returns 89% 87% • Strong organic growth potential 85% Combined ratio 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Industry¹ 10-year avg. = 98.0% [intact] 10-year avg. = 94.6% Return on equity 40% 240 (Base 100 = 2004) 35% 220 30% 200 25% [intact] Direct premiums written growth [intact] 10-year avg. = 8.3% 180 20% 10-year avg. 160 = 16.8%2 15% 140 10% Industry1 Industry¹ 10-year avg. = 3.2% 5% 10-year avg. = 9.7% 120 0% 100 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1 Industry data: IFC estimates based on MSA Research excluding Lloyd's, ICBC, SGI, SAF, MPI, Genworth and IFC. All data as at Dec 31, 2014. 2 ROES reflect IFRS beginning in 2010. Since 2011, IFC's ROE is adjusted return on common shareholders' equity (AROE). Intact Financial Corporation [ 16 ]#17Ontario auto update The Ontario government has a mandate to reduce insurance rates while also reducing costs for insurers Cumulative Ontario Auto Rate Decreases 0% -2% -4% -6% Bill 15 passed * Savings from: PJI DRS Towing 6.1% Update The Ontario government budget outlines additional actions to reduce costs which include: - - Updating the catastrophic impairment definition Reducing the standard duration of medical and rehabilitation benefits to be more in line with other provinces Net cost reduction will become apparent as the measures are defined in regulation -8% -10% -12% Q2-13 Bill 65 passed • Savings from: • MIG definition reaffirmed Heath Care Provider licencing Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Industry -IFC Source: IFC estimates based on FSCO quarterly rate filings 9.6% Q1-15 Q2-15 Ontario auto accounts for approximately one quarter of our direct premiums written We continued our solid outperformance versus the industry We continue to believe we can protect our margins in Ontario Intact Financial Corporation [ 17 ]#18Further industry consolidation ahead Our domestic acquisition strategy Our track record of acquisitions ⚫• Targeting large-scale acquisitions of $500 million or more in direct premiums written Year Company DPW 2015 Canadian Direct Insurance $143 million Pursuing acquisitions in lines of business where we have expertise 2014 Metro General $27 million 2012 Jevco 2011 AXA Canada Acquisition target IRR of 15% 2004 Allianz $350 million $2 billion $798 million Targets: 2001 Zurich $510 million Bring loss ratio of acquired book of business to our average loss ratio within 18 to 24 months Bring expense ratio to 2 pts below IFC ratio 1999 Pafco $40 million 1998 Guardian $630 million 1997 1995 Canadian Surety $30 million Wellington $311 million Canadian M&A environment Environment more conducive to acquisitions now than in recent years: • Industry ROES, although slightly improved from trough levels of mid-2009, are well below prior peak Foreign parent companies are generally in less favourable capital position Demutualization likely for P&C insurance industry Top 20 P&C insurers = 83% of market Canadian Owned, Public, 3% Non-top 20, 17% IFC, 17% Canadian Mutuals, 12% Foreign Owned, 28% Canadian Bank Owned, 8% Canadian Owned, Private, 15% Industry data: IFC estimates based on MSA Research excluding Lloyd's, ICBC, SGI, SAF, MPI, and Genworth. Desjardins direct premiums written in 2014 is pro forma State Farm for a full year. All data as at Dec 31, 2014. Intact Financial Corporation [18]#19Historical financials Track record of stable financial performance (in $ millions, except as otherwise noted) Income statement highlights 2014 2013 2012 2011 2010 Direct written premiums Underwriting income $7,349 $7,319 $6,868 $5,099 $4,498 519 142 451 273 194 Net investment income 427 406 389 326 294 Net operating income (NOI) 767 500 675 460 402 NOIPS to common shareholders (in dollars) 5.67 3.62 5.00 3.91 3.49 Balance sheet highlights Total investments $13.440 $12,261 $12,959 $11,828 $8,653 Debt outstanding 1,143 1,143 1,143 1,293 496 Total shareholders' equity (excl. AOCI) 5,310 4,842 4,710 4,135 2,654 Performance metrics Claims ratio 62.6% 66.9% 61.6% 63.9% 65.4% Expense ratio 30.2% 31.1% 31.5% 30.5% 30.0% Combined ratio 92.8% 98.0% 93.1% 94.4% 95.4% Operating ROE (excl. AOCI) 16.3% 11.2% 16.8% 15.3% 15.1% Debt / Capital 17.3% 18.7% 18.9% 22.9% 14.3% Combined ratios by line of business Personal auto 94.5% 93.2% 95.7% 90.9% 98.1% Personal property 89.0% 104.4% 93.5% 103.5% 96.5% Commercial auto 89.6% 93.3% 81.5% 86.5% 86.0% Commercial P&C 94.2% 103.9% 91.6% 95.6% 90.7% Intact Financial Corporation [19]#20Investments snapshot Fixed income securities portfolio (Hedging positions excluded) Supra-National and Foreign, 2% Canadian provincial and municipal, 20% Preferred shares Fixed-rate perpetual. 28% Corporate, 43% Canadian federal government and agency, 35% Approx. 99% of fixed-income securities are rated 'A-' or better Our common share holdings consist of high- quality, dividend paying Canadian and U.S. companies. * As of June 30, 2015 Intact Financial Corporation Other perpetual 66% Retractable. 6% 86% of preferred shares are rated at least 'P2L' Geographic exposure of portfolio (Foreign currency exposure in the fixed-income portfolio is hedged using currency forwards) Other 2%. US 11% Canada 87% [ 20 ]#21Track record of prudent reserving practices Quarterly and annual fluctuations in reserve development are normal 2005 reserve development was unusually high due to the favourable effects of certain auto insurance reforms • Our consistent track record Rate of claims reserve development (favourable prior year development as a % of opening reserves) 9% 7.9% 8% 7% 6% 5% 4% 3.3% 3% 2% 1% conservative approach to 0% establishing and managing claims reserves of positive reserve development reflects our preference to take a 4.9% 4.0% 3.2% 2.9% 5.7% 4.8% 4.9% 5.1% 4.9% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Intact Financial Corporation [21]#22Contact Investor Relations General Contact Info Website: http://www.intactfc.com Click on "Investor Relations" tab Email: [email protected] Phone: 416.941.5336 1.866.778.0774 (toll-free) Samantha Cheung, MBA, M.Sc.Eng., P.Eng. Vice President, Investor Relations Phone: 416.344.8004 Email: [email protected] Maida Sit, CFA Director, Investor Relations Phone: 416.341.1464 ext 45153 Email: [email protected] To access our 2014 online annual report featuring interactive photos, videos, dynamic charts, and additional media, please scan the QR code or visit reports.intactfc.com/2014. Intact Financial Corporation [22]#23Forward-looking statements Certain of the statements included in this presentation about the Company's current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications”, “anticipates”, “believes", "estimates”, “predicts", "likely”, “potential" or the negative or other variations of these words or other similar or comparable words or phrases, are intended to identify forward-looking statements. Forward-looking statements are based on estimates and assumptions made by management based on management's experience and perception of historical trends, current conditions and expected future developments, as well as other factors that management believes are appropriate in the circumstances. Many factors could cause the Company's actual results, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors: the Company's ability to implement its strategy or operate its business as management currently expects; its ability to accurately assess the risks associated with the insurance policies that the Company writes; unfavourable capital market developments or other factors which may affect the Company's investments and funding obligations under its pension plans; the cyclical nature of the P&C insurance industry; management's ability to accurately predict future claims frequency; government regulations designed to protect policyholders and creditors rather than investors; litigation and regulatory actions; periodic negative publicity regarding the insurance industry; intense competition; the Company's reliance on brokers and third parties to sell its products to clients; the Company's ability to successfully pursue its acquisition strategy; the Company's ability to execute its business strategy; the Company's ability to achieve synergies arising from successful integration plans relating to acquisitions including its acquisition of Canadian Direct Insurance Inc. ("CDI"), as well as management's estimates and expectations in relation to resulting accretion, internal rate of return and debt-to-capital ratio; the Company's participation in the Facility Association (a mandatory pooling arrangement among all industry participants) and similar mandated risk-sharing pools; terrorist attacks and ensuing events; the occurrence of catastrophic events; the Company's ability to maintain its financial strength and issuer credit ratings; access to debt financing and the Company's ability to compete for large commercial business; the Company's ability to alleviate risk through reinsurance; the Company's ability to successfully manage credit risk (including credit risk related to the financial health of reinsurers); the Company's reliance on information technology and telecommunications systems and potential disruption to those systems, including evolving cyber attack risk; the Company's dependence on key employees; changes in laws or regulations; general economic, financial and political conditions; the Company's dependence on the results of operations of its subsidiaries; the volatility of the stock market and other factors affecting the Company's share price; and future sales of a substantial number of its common shares. All of the forward-looking statements included in this presentation are qualified by these cautionary statements and those made in the Risk management section of our MD&A for the year ended December 31, 2014. These factors are not intended to represent a complete list of the factors that could affect the Company. These factors should, however, be considered carefully. Although the forward-looking statements are based upon what management believes to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. When relying on forward-looking statements to make decisions, investors should ensure the preceding information is carefully considered. Undue reliance should not be placed on forward-looking statements made herein. The Company and management have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Intact Financial Corporation [ 23 ]#24Disclaimer This Presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall it or any part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever. The information contained in this Presentation concerning the Company does not purport to be all-inclusive or to contain all the information that a prospective purchaser or investor may desire to have in evaluating whether or not to make an investment in the Company. The information is qualified entirely by reference to the Company's publicly disclosed information. No representation or warranty, express or implied, is made or given by or on behalf of the Company or any of its the directors, officers or employees as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation and no responsibility or liability is accepted by any person for such information or opinions. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the attendees with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation that may become apparent. The information and opinions contained in this Presentation are provided as at the date of this Presentation. The contents of this Presentation are not to be construed as legal, financial or tax advice. Each prospective purchaser should contact his, her or its own legal adviser, independent financial adviser or tax adviser for legal, financial or tax advice. The Company uses both International Financial Reporting Standards ("IFRS") and certain non-IFRS measures to assess performance. Non-IFRS measures do not have any standardized meaning prescribed by IFRS and are unlikely to be comparable to any similar measures presented by other companies. Management of the Company analyzes performance based on underwriting ratios such as combined, general expenses and claims ratios as well as other performance measures such as return on equity ("ROE") and operating return on equity. These measures and other insurance related terms are defined in the Company's glossary available on the Intact Financial Corporation web site at www.intactfc.com in the "Investor Relations" section. Additional information about the Company, including the Annual Information Form, may be found online on SEDAR at www.sedar.com. Intact Financial Corporation [24]