First Take 2Q26 Earnings: Seeing Some Challenges

Research evidence excerpt

First Take 2Q26 Earnings: Seeing Some Challenges

Update

July 28, 2026 10:59 PM GMT

Morgan Stanley & Co. LLCMIntact Financial Corporation | North America Bob Jian Huang

Equity Analyst

First Take 2Q26 Earnings: Bob.Huang@morganstanley.comDaniel Lee, ACAS +1 212 761-6136

Research Associate

Daniel.Lee4@morganstanley.com +1 212 761-0219

Seeing Some Challenges Siddhant Shah

Sid.Shah@morganstanley.com +1 212 761-2603

AlphaSignals Earnings Reaction

Intact Financial Corporation (IFC.TO, IFC CN)

Unchanged Modest shortfall Modest revision lower

Insurance - Property & Casualty | Canada

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS Stock Rating Equal-weight

Source: Company data, Morgan Stanley Research Industry View Attractive

Price target C$300.00

Shr price, close (Jul 28, 2026) C$305.00

Strong Canada offset by other regions: While the underwriting of Canadian Mkt cap, curr (mm) C$54,103

segment was largely stable, the UK & International (UK&I) and the US business 52-Week Range C$310.84-242.87

segments saw varying degrees of pressure. Given the US is entering into a soft

market for property, the current growth slowdown is likely understood. That said,

the overall core loss ratio in the US was notably weak, only to be offset by mild

catastrophe losses. In UK&I, business combination pressured growth and core loss

ratio was elevated due to large losses. Overall underwriting, & expense

management should be a core focus for the UK&I segment going forward. While the

results were overall challenging, the key for the company will be how to improve

underwriting and turn around the UK&I business.

What We Liked

• Canada Personal Auto Underwriting: Total underwriting income increased

to $211 million vs cons.