(in Canadian dollars except as otherwise noted)
Highlights
- Operating DPW growth accelerated to 3% in the quarter, and 5% excluding strategic exits, on favourable market conditions
- Operating combined ratio was a solid 91.5% in Q4-2022 and 91.6% for the full year despite elevated catastrophe losses and inflation
- Net operating income per share of $3.34 in the quarter and $11.88 for the full year reflected higher investment and distribution income, which partially offset lower underwriting margins
- EPS decreased to $2.26 in Q4-2022, but was up 9% for the full year on higher operating income and investment gains
- OROE of 14.3% and ROE of 16.5% reflected strong operating performance in a challenging environment
- Balance sheet remained strong with a total capital margin of $2.4 billion and BVPS of $80.33 despite capital markets volatility
- Quarterly dividend increased by 10% to $1.10 per common share
Charles Brindamour, Chief Executive Officer, said:
"The resilience of our platform was again evident in 2022 with a mid-teens ROE despite elevated catastrophe losses and inflation pressures. At the same time, we made significant progress on the RSA integration, which contributed 16% to net operating income per share for the full year and drove 23% growth in premiums. With the business operating at a low 90s combined ratio, positive top line momentum across all segments and a strong balance sheet, we are well positioned to deliver on our financial and strategic objectives in the year ahead. We are therefore pleased to increase dividends to common shareholders for the eighteenth consecutive year. "