Definity Financial Corporation

Latest Results (16.05.2026):

Definity Financial Corporation – Q4 2025: Definity reported strong top-line growth and underwriting performance in Q4 2025, with gross written premiums up 9.2% for the quarter and solid full-year growth (8.8% adjusted for an exited line). The company delivered a Q4 combined ratio of 89.9% and operating net income of $120.7 million (operating EPS $0.99). Book value per share rose to $33.78 (+16% y/y) and the board raised the quarterly dividend to $0.215. Definity completed the Travelers acquisition on January 2, 2026, creating a pro forma top‑5 Canadian P&C insurer with about $6.3 billion of combined annual GWP.

Premium growth

Gross written premiums (GWP) increased 9.2% in Q4 2025 to $1,212.1M. Personal lines led growth (+10.4% Q4), with auto GWP +9.7% and property GWP +11.6%. Commercial GWP rose 6.9% in Q4. For 2025, GWP was $4.808B (8.1% y/y) and pro forma GWP including Travelers reaches ~ $6.3B.

Underwriting and combined ratio

Strong underwriting results: Q4 underwriting income was $111.5M and the Q4 combined ratio improved to 89.9% (full-year combined ratio 91.6%). Personal property delivered the strongest profitability (Q4 combined ratio 82.7%), while auto was 95.0% and commercial lines remained strong at 89.1%.

Earnings and operating performance

Operating net income for Q4 2025 was $120.7M (operating EPS $0.99), up from $110.4M a year earlier. Operating ROE for the last 12 months rose to 12.2% (from 10.6%). Net investment income contributed $61.1M in Q4 and $215.7M for the year.

GAAP net income vs operating net income

Reported net income attributable to common shareholders was $58.0M in Q4 2025 (diluted EPS $0.48), down from $116.6M in Q4 2024. The decline reflects ~ $74M of pre-tax expenses tied to the Travelers Transaction (including FX hedge ineffectiveness and integration costs) and higher interest expense; these items are excluded from the operating results.

Capital, book value and liquidity

Equity attributable to common shareholders reached $4,049.7M as at December 31, 2025 (+22% y/y). Book value per share was $33.78, up 16% year-over-year. Financial capacity increased materially to $2,892.0M, and the company reports capital remains well in excess of targets.

Dividend and shareholder returns

The Board increased the quarterly dividend by 14.7% to $0.215 per share (payable March 23, 2026), marking the fourth consecutive year of dividend increases and reflecting management’s confidence in the operating outlook and capital position.

Travelers Transaction

Definity closed the previously announced acquisition of Travelers’ Canadian P&C operations on January 2, 2026 (cash consideration ≈ $3.3B). Management says the deal adds ~ $1.5B of pro forma GWP and positions Definity among the top five Canadian P&C insurers (~$6.3B pro forma GWP).

Other operational notes

Distribution income was $10.9M in Q4; broker operating income grew year-over-year as distribution business expanded through acquisitions and organic growth. Management highlights continued rate achievement, strong retention, and improvement in expense ratios as drivers of performance.