Intact Financial : 2021 Social Impact Report

Make itIntact

INTACT FINANCIAL CORPORATION

SOCIAL IMPACT REPORT 2021

Our Purpose, Values and Core Belief

Our Values guide our decision-making, keep us grounded, help us outperform and are key to our success.

We are here to help people, businesses and society prosper in good times and be resilient in bad times.

Integrity

Respect

Customer-drivenExcellence

Generosity

People are at the heart of our organization - and of our success.

How we do things is just as important as what we achieve. We are a purpose-driven company based on values and a belief that insurance is about people, not things.

Table of Contents

A Leading Provider of P&C Insurance 4

Sustainable Investment and Underwriting 40

Reporting scope and boundary

CEO's Letter 5

Integrating ESG into Investment Decisions 41

Helping Society is Core to Our Strategy 7

ESG and Underwriting Approach 43

Throughout this report, "Intact" refers to Intact Financial Corporation. All currency is in Canadian dollars unless otherwise noted. This report covers performance across Intact Financial Corporation's global operations in the financial year January 1 to December 31, 2021.

Forward-looking statements

Customer-Driven 8

Supply Chain Performance 45

Getting Our Customers Back on Track 9

Managing Our Supply Chain 46

Support for Vulnerable Customers 10

Delivering Sustainable Claims Solutions 47

An Enhanced Digital Experience 11

ESG Governance and Business Integrity 49

Customer Communications 13

ESG Governance 50

Investing in Our People 14

Our Approach to Business Integrity 56

Who We Are 15

Standards and Frameworks 60

Certain of the statements included in this Report about our 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. These forward-looking statements include, among others, statements with respect to our beliefs and intentions, our vision, our strategic goals and priorities, including our actions related to climate change, child poverty, climate-related disclosure, and diversity, equity and inclusion. They also include statements regarding the impact of the COVID-19 pandemic and our response to it. We caution readers not to place undue reliance on these statements, as a number of factors could cause our results and intentions to differ materially from the expectations expressed or implied by the forward-looking statements. All of the forward-looking statements included in this report are qualified by these cautionary statements and those made under the Cautionary note regarding forward-looking statements and the Risk Management sections of our Management's Discussion and Analysis for the year ended December 31, 2021.

Employee Engagement and Recognition 17

Task Force on Climate-Related Financial Disclosures 61

Ensuring Resilience and Wellbeing 18

Sustainability Accounting Standards Board (SASB) 69

Driving Diversity, Equity and Inclusion 19

Public Accountability Statement 76

Providing Fulfilling Careers 22

ESG Data Tables 80

Building Resilient Communities 24

Our Climate Transition Strategy 25

®Intact Small Straight Lines Design, Intact Design, Intact Insurance Design, Intact Centre on Climate Adaptation and Intact Ventures are registered trademarks of Intact Financial Corporation. ®myDrive is a registered trademark of Intact Insurance Company used under license. ®belairdirect. & Design and automerit are registered trademarks of Belair Insurance Company Inc. used under license. ®Brokerlink & Design is a registered trademark of Brokerlink Inc. used under license. ®ON SIDE RESTORATION & Design is a registered trademark of On Side Restoration Services LTD. used under license. ®RSA and Circle Design are registered trademarks of RSA Insurance Group Limited used under license. ™More Th>n Design and 123.ie Design are trademarks of RSA Insurance Group Limited used under license. ™Johnson Insurance Design is a trademark of Johnson Inc. All other trademarks are properties of their respective owners. ©2022 Intact Financial Corporation. All rights reserved.

Double Down on Climate Adaptation 27

A Focus on Creating Opportunity 32

Community Generosity 34

Living our Value of Generosity 35

The Intact Generosity in Action Campaign and United Way 38

Preventing Accidents at Home with RoSPA 39

The Purpose of Our Social Impact Report

Who we are and how we work ground us. People are at the heart of our organization and our success. How we do things is just as important as what we achieve. How we execute on social impact and ESG dimensions is detailed throughout this report, starting with the areas where we can have the greatest impact and that are aligned to our strategy.

We are a purpose-driven company based on Values and a belief that insurance is about people, not things.

A Leading Provider of P&C Insurance

A Leading Provider of P&C Insurance

Largest provider of P&C insurance in Canada, a leading provider of global specialty insurance, and a leader in personal and commercial lines in the UK and Ireland.

Large share of our portfolio is in Canada.

$20.8B

in total annual operating Direct Premiums Written (DPW) (proforma)1

$36.7B

Investment portfolio

26,000 +

employees

Specialty lines make up nearly a quarter of the overall premiums.

1 Includes the impact of the RSA Acquisition for a full year.

In Canada, Intact distributes insurance under the Intact Insurance and RSA brands through a wide network of brokers, including its wholly-owned subsidiary BrokerLink, and directly to consumers through belairdirect. Intact also provides affinity insurance solutions through the Johnson Affinity Groups.

In the US, Intact Insurance Specialty Solutions provides a range of specialty insurance products and services through independent agencies, regional and national brokers, wholesalers and managing general agencies. Intact Insurance Specialty Solutions is the marketing brand for the insurance company subsidiaries of Intact Insurance Group USA LLC.

In our UK & International businesses, RSA Insurance Group provides a range of personal and commercial products with significant businesses in the UK and

Ireland where the RSA brand is joined by retail brands MORE THAN and 123.ie.

RSA Luxembourg serves brokers and customers in Belgium, France, Spain andtheNetherlands.

CEO's Letter

CEO's Letter

Over the past few years, deep-rooted challenges have persistently impacted people, communities, and the economy. In challenging times, businesses need to step up with their expertise, resources and scale to help find solutions.

The world is rapidly changing - from the ripple effects of the pandemic to the increasing impacts of climate change and extreme weather and the humanitarian crisis inflicted by the war in Ukraine. We are there to help. It's why we exist. When facing adversity, our Values guide our decision-making, inform how we define success and help us do what is right. In 2021, we've increased our efforts to make a positive impact in the communities where we operate at Intact, and I'm pleased to share our progress with you.

Our employees are at the heart of our organization, and we've been investing in a diverse and inclusive workforce over many years. We introduced an enhanced ambition to ensure our employees and leaders are representative of the communities we serve. Our Value of Respect is founded on seeing diversity as a strength, being inclusive and fostering collaboration - we're looking to lead by example. We've made new commitments to reflect this ambition, with our UK&I business joining the Race at Work Charter and the Women in Finance Charter.

Helping is core to our strategy

Opportunities exist for us to find the intersection of what's good for the planet, our communities, and the health of our business.

We've accelerated our ambition on resiliency and aim to have 3 out of 4 stakeholders recognize us as leaders in building resilient communities. Our work applies to climate change and to creating opportunities for families and children living in poverty - ensuring a prosperous future. Our commitments are backed with actions detailed in this report and it's important we measure their effectiveness. A new resilience barometer launching later this year will ensure the signals we are sending are consistent and impactful.

To succeed, our commitments must be ambitious and collaborative - and they must drive concrete action.

Building resilient communities

Our social impact strategy defines how we help our communities, and it reflects our Value of Generosity. We've been bringing together the great work done through RSA's Confident Futures strategy and Intact's focus on resilience. We will continue to scale our social impact work in the major countries where we operate.

While environmental, social, governance (ESG) factors have always been embedded in our strategy, we have enhanced our strategic

Chief Executive Officer Charles Brindamour

objectives to better measure our work in the coming years. This has further integrated our purpose to help society into our business strategy and increased our ambition and our actions.

Intact has long been focused on solutions in climate adaptation, and we've been on the front lines of its impacts for more than a decade. We have forged strategic partnerships, such as our $10 million commitment to the leading Intact Centre on Climate Adaptation at the University of Waterloo, to help us protect communities and find practical solutions on climate adaptation. I am proud of our commitment to help fight climate change and we will continue to build on our leadership in adaptation - but there is more to do.