Ms. Caroline Audet reports

INTACT FINANCIAL CORPORATION ANNOUNCES PRIVATE PLACEMENT OF $250 MILLION LIMITED RECOURSE CAPITAL NOTES AND INTENTION TO REDEEM NON-CUMULATIVE RATE RESET CLASS A SHARES SERIES 3

Intact Financial Corp. has agreed to issue $250-million aggregate principal amount of 6.133 per cent limited recourse capital notes (LRCNs), Series 3 (subordinated indebtedness), due Sept. 30, 2086, by way of a private placement to accredited investors in Canada.

Intact also announced that it has sent today to the sole registered holder of its 10 million non-cumulative rate reset Class A shares, Series 3, a formal notice and instructions for the redemption of the Series 3 preferred shares. Intact will redeem the Series 3 preferred shares as of Sept. 30, 2026, upon payment of a redemption price equal to $25 per share, together with declared and unpaid dividends to, but excluding, the date of redemption. Non-registered holders of Series 3 preferred shares should contact their broker or other intermediary for information regarding the redemption process for the Series 3 preferred shares in which they hold a beneficial interest. Intact's transfer agent for the Series 3 preferred shares is Computershare Investor Services Inc. Questions regarding the redemption process may be directed to Computershare at 1-800-564-6253 corporateactions@computershare.com.

Following the redemption on Sept. 30, 2026, the Series 3 preferred shares will be delisted from, and no longer trade on, the Toronto Stock Exchange.

The LRCNs will be direct unsecured obligations of Intact and will be subordinated to all senior indebtedness of Intact and effectively subordinated to all indebtedness and obligations of Intact's subsidiaries. The LRCNs will bear interest at a fixed annual rate of 6.133 per cent until Sept. 30, 2031, and the interest rate will reset on that date and on every fifth anniversary of such date until the maturity date at a fixed interest rate per annum equal to the government of Canada yield on the business day prior to such interest reset day plus 2.75 per cent. In connection with the issuance of the LRCNs, Intact will issue 250,000 non-cumulative rate reset Class A shares, Series 15, to be held by Computershare Trust Company of Canada, as trustee of IFC LRCN Trust. In case of non-payment of interest on or the principal or redemption price of the LRCNs when due, the recourse of each holder of LRCNs will be limited to that holder's proportionate share of the limited recourse trust's assets in respect of the LRCNs, which will consist of the Series 15 preferred shares except in limited circumstances.

Intact may redeem the LRCNs in whole or in part, at its option, during the period from Aug. 31 to and including Sept. 30, commencing in 2031 and every five years thereafter, on payment of a redemption price equal to par, together with accrued and unpaid interest to, but excluding, the date of redemption.

Intact intends to use the net proceeds from the private placement for general corporate purposes, in order to subscribe for shares of one or more subsidiaries of Intact, in order to repay all or a portion of any amounts previously borrowed by Intact, in order to redeem all or a portion of any preferred shares previously issued by Intact or any combination thereof.

The LRCNs are being offered on a best efforts basis through a syndicate co-led by CIBC Capital Markets and Bank of Nova Scotia. The LRCNs are expected to be issued on or about Aug. 24, 2026. Closing of the private placement is subject to certain customary conditions.

About Intact Financial Corp.

Intact Financial is a global provider of property and casualty insurance founded on core values and a belief that insurance is about people, not things. Intact's success is fuelled by its 32,000 employees worldwide who embody the company's purpose: to help people, businesses and society prosper in good times and be resilient in bad times. To achieve its ambitions, Intact seeks to ensure customers are its advocates, its people are engaged and the company is one of the most respected.

Intact is the largest provider of property and casualty insurance in Canada, and it has successfully exported its strengths across North America, the United Kingdom and Europe. Its growing commercial and specialty solutions network now spans over 150 countries. With a customer-driven mindset, Intact has expanded its operations to include insurance distribution, restoration and prevention.

Intact solidifies its outperformance by leveraging its competitive advantages: global leadership in data and AI for pricing and risk selection; deep claims expertise and integrated supply chain network; and strong capital and investment management. Intact's total annual operating direct premiums written has tripled over the last decade to $25-billion.

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