Definity Financial Corporation Reports Third Quarter 2025 Results

Executive Summary

• Definity posted record Q3 2025 operating net income of C$125.2 M ($1.03 per share), a 692% increase versus Q3 2024 and drove operating EPS to a new high.
• Gross written premiums grew 7.5% YoY to C$1.23 B (C$4.70 B twelve‑month total); combined ratio improved to 89.4% from 103.4% a year earlier, reflecting markedly lower catastrophe losses.
• The company completed a C$1 B senior unsecured notes private placement and confirmed financing is in place for the pending Travelers acquisition, with closing expected in the first half of Q1 2026.
• Board declared a C$0.1875 per share dividend, payable 24 Dec 2025.

Key Details

• Financial Performance
• Operating net income: C$125.2 M (Q3 2024: C$14.6 M) → +110.6 M.
• Operating EPS: C$1.03 vs. C$0.13 a year ago (+692%).
• Net income attributable to common shareholders: C$193.1 M (↑ C$88.3 M YoY).
• Book value per share: C$33.43, up 24% YoY.

• Operating ROE (12‑month): 12.5% vs. 10.7% prior year.

• Underwriting & Claims

• Gross written premiums (GWP) Q3 2025: C$1,228.5 M (+7.5% YoY); 12‑mo total C$4.70 B.
• Net underwriting revenue: C$1,074.1 M (+9.4% YoY).
• Underwriting income: C$113.6 M (vs. a loss of C$33.1 M in Q3 2024).
• Combined ratio: 89.4%, down from 103.4% a year earlier.

• Catastrophe losses contribution: 3.6 pp vs. 46.4 pp in Q3 2024.

• Segment Highlights

• Personal Auto: GWP C$517.0 M (+6.2% YoY); combined ratio 94.0% (down from 98.3%).
• Personal Property: GWP C$359.6 M (+9.3% YoY); combined ratio 83.6% (down from 124.9%).

• Commercial Lines: GWP C$351.9 M (+7.5% YoY); combined ratio 88.1% (slightly better than prior year).

• Financing & Capital

• Completed C$1 B senior unsecured notes issuance (Series 1: $650 M @3.709% due 2030; Series 2: $350 M @4.393% due 2035).
• Private placements of common shares in Q2 2025 raised equity, contributing C$375.2 M to capital.
• Equity attributable to shareholders: C$4,007.4 M, up C$687.6 M YoY.

• Financial capacity (excluding term loan) now C$2,846.5 M.

• Travelers Transaction

• Definitive agreement announced May 27 2025 to acquire Travelers’ Canadian P&C business for ≈C$3.3 B cash.

• Closing anticipated in the first half of Q1 2026; all regulatory approvals (including Competition Act clearance) already received.

• Dividend

• Board declared C$0.1875 per share, payable 24 Dec 2025 to shareholders of record 12 Dec 2025.

• Conference Call

• Management will discuss results at 11:00 a.m. ET, 7 Nov 2025; webcast available on company website.

Notable Quotes

“The third quarter of 2025 set a record for quarterly earnings… operating net income of $125.2 million, or $1.03 per share.” – Rowan Saunders, President & CEO

“We successfully completed a $1 billion private placement of senior unsecured notes… we are in excellent shape both financially and operationally as we look ahead toward a targeted closing in the first half of Q1 2026.” – Philip Mather, EVP & CFO