Latest news with #Definity
Cision Canada
31-07-2025
- Business
- Cision Canada
Definity Financial Corporation Reports Second Quarter 2025 Results
TORONTO, /CNW/ - (TSX: DFY) (in Canadian dollars except as otherwise noted) Highlights Gross written premium 1 growth of 9.1% in Q2 2025 excluding the premiums of our exited line from both periods, on solid underlying personal auto rate and unit count growth achievement, continued firm market conditions in personal property, and strong execution in commercial insurance Combined ratio 1 of 92.9% in Q2 2025 reflects a strong, disciplined performance across both commercial and personal lines, driven by improvements in Sonnet profitability, continued expense efficiencies, and a lower-than-expected level of catastrophe losses 1 Operating net income 1 of $98.9 million in Q2 2025 compared to $109.1 million in Q2 2024, resulting in operating EPS 1 of $0.84; trailing 12-month operating ROE 1 was 9.6% Financial position remained strong, with book value per share 1 of $31.39, 19.9% higher than a year ago inclusive of our equity private placements announced on May 27 to partially finance our acquisition of Travelers Canada Accelerated our growth strategy by announcing the $3.3 billion acquisition of Travelers Canada, providing a rare combination of scale, strategic fit and compelling financial rationale 2 Executive Messages "The second quarter of 2025 was an exciting one for Definity, as we announced an agreement to acquire Travelers Canada – a true milestone for the company and our next step in building a Canadian champion. The addition of Travelers Canada will significantly accelerate our growth profile, delivering on our strategic goal of becoming a Top 5 P&C insurer in Canada. Integration planning is well underway, and we expect the transaction to close in Q1 2026 after customary regulatory approvals. Meanwhile, we remain focused on improving our existing business and clear progress was made in the quarter on all three of our organic operating ROE levers, with Sonnet profitability improving, our operating expense ratio already where we expect to end the year, and significant progress on our planned delivery of Guidewire for property claims. Our financial performance in the second quarter again delivered on our objectives, with GWP up 9.1% from a year ago, adjusted for our exited line, and a better-than-target combined ratio of 92.9%. Overall, I am thrilled with the position of the company and the momentum we continue to build." – Rowan Saunders, President & CEO "We ended the second quarter with book value per share of $31.39, up 19.9% from a year ago, inclusive of our private placements of common shares to fund part of the Travelers Canada acquisition, as well as continued solid financial results. Operating results in the quarter included $50.7 million of net investment income, and $21.9 million of distribution income reflecting strong performance from our broker distribution platform. These results combined with solid underwriting income to generate an operating return on equity of 9.6%, despite the active catastrophe experience from Q3 2024 which continues to weigh on operating income in the past 12 months. Our performance in the first half of the year positions us to deliver on our 2025 financial targets while we continue to make progress on the completion, funding, and integration planning for our acquisition of Travelers Canada." – Philip Mather, EVP & CFO Consolidated Results (in millions of dollars, except as otherwise noted) Q2 2025 Q2 2024 Change 2025 YTD 2024 YTD Change Insurance revenue 1,162.1 1,046.1 11.1 % 2,274.0 2,038.0 11.6 % Gross written premiums 1 1,337.4 1,239.7 7.9 % 2,367.5 2,195.3 7.8 % Net underwriting revenue 1 1,048.8 949.4 10.5 % 2,050.6 1,854.7 10.6 % Claims ratio 1 63.2 % 60.0 % 3.2 pts 63.7 % 61.2 % 2.5 pts Expense ratio 1 29.7 % 30.1 % (0.4) pts 30.0 % 30.8 % (0.8) pts Combined ratio 1 92.9 % 90.1 % 2.8 pts 93.7 % 92.0 % 1.7 pts (in millions of dollars, except as otherwise noted) Q2 2025 Q2 2024 Change 2025 YTD 2024 YTD Change Insurance service result 144.3 166.2 (21.9) 267.6 289.8 (22.2) Underwriting income 1 74.6 93.7 (19.1) 129.6 148.5 (18.9) Net investment income 50.7 49.9 0.8 100.5 98.1 2.4 Distribution income 1 21.9 17.2 4.7 32.9 27.2 5.7 Net income attributable to common shareholders 75.1 103.8 (28.7) 167.1 209.0 (41.9) Operating net income 1 98.9 109.1 (10.2) 174.8 185.2 (10.4) Per share measures (in dollars) Diluted earnings per share 0.64 0.89 (28.1 %) 1.43 1.79 (20.1 %) Operating earnings per share 1 0.84 0.94 (10.6 %) 1.50 1.59 (5.7 %) Book value per share 1 31.39 26.17 19.9 % Return on equity Return on equity ("ROE") 1 12.2 % 13.6 % (1.4) pts Operating ROE 1 9.6 % 10.8 % (1.2) pts Gross written premiums ("GWP") for Q2 2025 increased by $97.7 million or 7.9% compared to Q2 2024, with growth across all our lines of business. GWP growth was 9.1% excluding the premiums of our exited line from both periods. Personal lines GWP were up 6.9% (8.6% when excluding the premiums of our exited line from both periods), driven by auto rate and unit count increases along with continued rate increases in property. Commercial lines GWP increased 10.0%, driven by strong retention and rate achievement, with further expansion of our small business and specialty capabilities. Year to date, GWP increased by $172.2 million or 7.8% compared to 2024. Personal lines GWP increased 6.8% and commercial lines GWP increased 10.0%. Underwriting income for Q2 2025 was $74.6 million and the combined ratio was 92.9%, compared to underwriting income of $93.7 million and a combined ratio of 90.1% in Q2 2024. The combined ratio in Q2 2025 was strong, but higher than the very benign Q2 2024 driven by an increase in catastrophe losses and an increase in the core accident year claims ratio in our commercial lines of business. These were partially offset by improvements in Sonnet profitability and continued expense efficiencies. Year to date, our underwriting income decreased by $18.9 million and led to a combined ratio of 93.7%, compared to 92.0% in 2024, driven by the same factors that impacted the second quarter. Net investment income was $50.7 million in Q2 2025 and $100.5 million year to date compared to $49.9 million in Q2 2024 and $98.1 million in 2024 year to date. The increase was due to an increase in interest income driven by higher holdings of bonds, partially offset by a decrease in dividend income. Distribution income was $21.9 million in Q2 2025 and $32.9 million year to date compared to $17.2 million in Q2 2024 and $27.2 million in 2024 year to date. The increase was driven primarily by the contributions from acquisitions combined with solid underlying organic growth. Net Income and Operating Net Income Net income attributable to common shareholders was $75.1 million in Q2 2025, compared to net income of $103.8 million in Q2 2024. The decrease was driven by acquisition-related expenses and higher catastrophe losses. Year to date, net income attributable to common shareholders was $167.1 million compared to $209.0 million in 2024. Operating net income was $98.9 million in Q2 2025, compared to $109.1 million in Q2 2024, due to a decrease in underwriting income driven by higher catastrophe losses, partially offset by a decrease in the expense ratio and higher distribution income. Year to date, operating net income was $174.8 million compared to $185.2 million in 2024. Operating ROE was 9.6% for the twelve-month period ended June 30, 2025 compared to 10.8% for the twelve-month period ended June 30, 2024. The decrease in operating ROE was driven by the significant growth in average adjusted equity attributable to common shareholders, excluding accumulated other comprehensive loss ("AOCI"), and higher comparative catastrophe losses. Line of Business Results Personal Insurance Personal lines GWP increased 6.9% in Q2 2025 (6.8% year to date) with strong growth in our broker channel. Direct channel GWP, excluding Sonnet Alberta personal auto in both periods, increased by 3.4% in Q2 2025 (0.8% year to date). Personal auto GWP increased 6.8% in Q2 2025 (6.5% year to date). GWP increased 9.6% in Q2 2025 (9.9% year to date) when excluding the premiums of our exited line from both periods, driven by rate and unit growth. The combined ratio was 94.2% in Q2 2025 compared to 95.2% in Q2 2024, driven by earned rate increases and improved Sonnet profitability. Year to date, the personal auto combined ratio improved due to the same factors that impacted the second quarter. Personal property GWP increased 7.1% in Q2 2025 (7.4% year to date), benefitting from continued firm market conditions driving increases in average written premiums. This was partially offset by ongoing active management of our portfolio to address risk concentration in regions with a higher propensity for peril events. The combined ratio in Q2 2025 was 94.3% compared to 86.0% in Q2 2024, driven by higher catastrophe losses. Q2 2024 experienced an unusually benign level of catastrophe losses, with catastrophe losses contributing only 2.6 percentage points in Q2 2024 compared to 12.6 percentage points in Q2 2025. The 10.0 percentage point increase in catastrophe losses in Q2 2025 was partially offset by a decrease in the expense ratio and the core accident year claims ratio. Year to date, the personal property combined ratio increased, driven by elevated catastrophe losses. Commercial Insurance Commercial lines GWP increased 10.0% both in Q2 2025 and year to date, driven by strong retention and rate achievement, with further expansion of our small business and specialty capabilities. Commercial lines continued to benefit from our focus on underwriting execution and rate adequacy with a strong combined ratio of 89.6% in Q2 2025 compared to 86.6% in Q2 2024. The increase in the combined ratio was driven by an increase in the core accident year claims ratio as a result of a normalized weather quarter, partially offset by lower catastrophe losses and a decrease in the expense ratio. The decrease in catastrophe losses and the corresponding increase in the core accident year claims ratio was impacted by the change in definition for a single claim loss in 2025. Year to date, the commercial lines combined ratio was also strong at 90.1%, compared to 89.3% in 2024, due to the same factors that impacted the second quarter. Financial Position Our capital position as of June 30, 2025 remains strong and well in excess of our capital targets. Equity attributable to common shareholders increased by $443.5 million, or 13.4%, as at June 30, 2025, driven by an increase of $375.2 million (after payment of underwriter commissions and net of applicable taxes) from our concurrent private placements of common shares, which closed on June 11, 2025, and operating net income generated in the first half of 2025. The increase in financial capacity as at June 30, 2025 was due primarily to our concurrent private placements of common shares, a change in our leverage capacity calculation to 30% (from 25%) to better reflect our anticipated leverage ratio for the Travelers Transaction, and capital generated from operating net income. These were partially offset by ongoing deployment of capital for broker acquisitions, and disciplined deployment of capital to support our organic growth and dividend priorities. Dividend On July 31, 2025, our Board of Directors declared a $0.1875 per share dividend, payable on September 26, 2025 to shareholders of record at the close of business on September 12, 2025. Acquisition of Travelers Canada On May 27, 2025, we announced that we had entered into a definitive agreement with Travelers to acquire Travelers Canada for cash consideration of approximately $3.3 billion. We expect operating ROE will be enhanced by at least 200 basis points post integration and, combined with our ongoing organic initiatives, will enable us to sustainably target a mid-teens level post integration. On June 11, 2025, we completed concurrent private placements of common shares to our cornerstone investor, Healthcare of Ontario Pension Plan Trust Fund, and a group of underwriters raising aggregate net proceeds of $375.2 million (after payment of underwriter commissions and net of applicable taxes). The Travelers Transaction is subject to customary closing conditions, including regulatory approvals from the Minister of Finance (Canada), and is expected to close in Q1 2026. Unconditional clearance under the Competition Act (Canada) was received on July 17, 2025. We incurred acquisition-related expenses of $41.2 million and integration expenses of $1.8 million in Q2 2025 related to the Travelers Transaction. Normal Course Issuer Bid ("NCIB") Our NCIB, which allowed the Company to buy its own shares, was not renewed when it expired on May 30, 2025. No common shares had been purchased under the NCIB and the Company does not currently intend to put in place an NCIB at this time. We expect to optimize our balance sheet through the funding of the Travelers Transaction. Conference Call Definity will host a conference call to review information included in this news release and related matters at 11:00 a.m. ET on August 1, 2025. The conference call will be available simultaneously and in its entirety to all interested investors and the news media at A transcript will be made available on Definity's website within two business days. About Definity Financial Corporation Definity Financial Corporation ("Definity", which includes its subsidiaries where the context so requires) is one of the leading property and casualty insurers in Canada, with over $4.6 billion in gross written premiums for the 12 months ended June 30, 2025 and approximately $3.8 billion in equity attributable to common shareholders as at June 30, 2025. Cautionary Note Regarding Forward-Looking Information This news release contains "forward-looking information" within the meaning of applicable securities laws in Canada. Forward-looking information may relate to our future business, financial outlook and anticipated events or results and may include information regarding our financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "aims", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "budget", "scheduled", "estimates", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "does not anticipate", "believes", or variations of such words and phrases or statements that certain actions, events or results "can", "may", "could", "would", "might", "will", "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts, but instead represent management's expectations, estimates and projections regarding possible future events or circumstances. This news release contains forward-looking statements with respect to the Travelers Transaction and its completion. Estimates and assumptions have been made regarding, among other things, the receipt of all requisite approvals relating to the Travelers Transaction in a timely manner and on terms acceptable to the Company, the realization of the expected strategic, financial, and other benefits of the Travelers Transaction, and the implications of the economic and political environments and industry conditions at close and during the integration period. The completion of the Travelers Transaction is subject to customary closing conditions, termination rights, and other risks and uncertainties, including, without limitation, regulatory approvals, and there can be no assurance that the Travelers Transaction will be completed. There can also be no assurance that if the Travelers Transaction is completed, the strategic and financial benefits expected to result from the Travelers Transaction will be realized. Forward-looking information in this news release is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that we considered appropriate and reasonable as at the date such statements are made, and are subject to many factors that could cause our actual results, performance or achievements, or other future events or developments, to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors: Definity's ability to continue to offer competitive pricing or product features or services that are attractive to customers; Definity's ability to appropriately price its insurance products to produce an acceptable return, particularly in provinces where the regulatory environment requires auto insurance rate increases to be approved or that otherwise impose regulatory constraints on auto insurance rates; Definity's ability to accurately assess the risks associated with the insurance policies that it writes; Definity's ability to assess and pay claims in accordance with its insurance policies; Definity's ability to obtain adequate reinsurance coverage to manage risk; Definity's ability to accurately predict future claims frequency or severity, including the frequency and severity of weather-related events and the impact of climate change; Definity's ability to address inflationary cost pressures through pricing, supply chain, or cost management actions; the occurrence of unpredictable catastrophe events; litigation and regulatory actions, including potential claims in relation to demutualization and our IPO and unclaimed demutualization benefits and the tax treatment of related amounts transferred to the Company, and COVID-19-related class-action lawsuits that have arisen and which may arise, together with associated legal costs; Definity's ability to successfully identify, complete, integrate and realize the benefits of acquisitions or manage the associated risks; the uncertainty of obtaining in a timely manner, or at all, the regulatory approvals required to complete the Travelers Transaction; the Company's ability to improve its combined ratio, retain and attract new business, retain key employees, achieve synergies, and maintain market position during and after the integration of the Travelers Transaction; the Company's ability to complete the integration of the Travelers Transaction within anticipated time periods and at the expected cost; estimates and expectations in relation to future economic and business conditions and other factors in relation to the Travelers Transaction and any resulting impacts on growth and accretion in various financial metrics, including the pricing and terms of related financing; unfavourable capital market developments, interest rate movements, changes to dividend policies or other factors which may affect our investments or the market price of our common shares; changes associated with the transition to a low-carbon economy, including reputational and business implications from stakeholders' views of our climate change approach or of our environmental or climate change–related representations (i.e. "greenwashing"), those of our industry, or those of our customers; Definity's ability to successfully manage credit risk from its counterparties; foreign currency fluctuations; Definity's ability to meet payment obligations as they become due; Definity's ability to maintain its financial strength rating or credit rating; Definity's dependence on key people; Definity's ability to attract, develop, motivate, and retain an appropriate number of employees with the necessary skills, capabilities, and knowledge; Definity's ability to appropriately collect, store, transfer, and dispose of information; Definity's reliance on information technology systems, software, internet, network, data centre, voice or data communications services and the potential disruption or failure of those systems or services, including disruption as a result of cyber security risk or of a third-party service provider; failure of key service providers or vendors to provide services or supplies as expected, or comply with contractual or business terms; Definity's ability to obtain, maintain and protect its intellectual property rights and proprietary information or prevent third parties from making unauthorized use of our technology; Definity's ability to effectively govern the use of models, artificial intelligence, and generative AI technology; compliance with and changes in legislation or its interpretation or application, or supervisory expectations or requirements, including changes in the scope of regulatory oversight, effective income tax rates, risk-based capital guidelines, accounting standards, and generally accepted actuarial techniques; changes in domestic or foreign government policies, such as cross-border tariffs or trade policies, may negatively impact the Canadian economy and the P&C insurance industry and/or exacerbate other risks to Definity; failure to design, implement and maintain effective controls over financial reporting and disclosure which could have a material adverse effect on our business; deceptive or illegal acts undertaken by an employee or a third party, including fraud in the course of underwriting insurance or administering insurance claims; Definity's ability to respond to events impacting its ability to conduct business as normal; Definity's ability to implement its strategy or operate its business as management currently expects; general business, economic, financial, political, and social conditions, particularly those in Canada; the emergence or continuation of widespread health emergencies or pandemics, and their impact on local, national, or international economies, as well as their heightening of certain risks that may affect our business or future results; the competitive market environment and cyclical nature of the P&C insurance industry; the introduction of advanced technologies, disruptive innovation or alternative business models by current market participants or new market entrants; distribution channel risk, including Definity's reliance on brokers to sell its products; Definity's dividend payments being subject to the discretion of the Board and dependent on a variety of factors and conditions existing from time to time; the expiry of Definity's NCIB or the implementation of a new NCIB; Definity's dependence on the results of operations of its subsidiaries and the ability of the subsidiaries to pay dividends; Definity's ability to manage and access capital and liquidity effectively; management's estimates and judgments in respect of IFRS 17 and its impact on various financial metrics; periodic negative publicity regarding the insurance industry, Definity, Definity Insurance Foundation, or the Canadian operations of Travelers; and management's estimates and expectations in relation to interests in the broker distribution channel and the resulting impact on growth, income, and accretion in various financial metrics. If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results might vary materially from those anticipated in the forward-looking information. The opinions, estimates or assumptions referred to above and described in greater detail in the "11 – Risk Management and Corporate Governance" section of the Management's Discussion and Analysis for the year ended December 31, 2024 should be considered carefully by readers. Although we have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, the factors above are not intended to represent a complete list and there may be other factors not currently known to us or that we currently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such forward-looking information will prove to be accurate, as actual results could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information, which speaks only as at the date made. The forward-looking information contained in this news release represents our expectations as at the date of this news release (or as at the date they are otherwise stated to be made) and are subject to change after such date. However, we disclaim any intention, obligation, or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws in Canada. All of the forward-looking information contained in this news release is expressly qualified by the foregoing cautionary statements. Supplementary Financial Measures and Non-GAAP Financial Measures and Ratios We measure and evaluate performance of our business using a number of financial measures. Among these measures are the "supplementary financial measures", "non-GAAP financial measures", and "non-GAAP ratios" (as such terms are defined under Canadian Securities Administrators' National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure), and in each case are not standardized financial measures under GAAP. The supplementary financial measures, non-GAAP financial measures, and non-GAAP ratios in this news release may not be comparable to similar measures presented by other companies. These measures should not be considered in isolation or as a substitute for analysis of our financial information reported under GAAP. These measures are used by financial analysts and others in the P&C insurance industry and facilitate management's comparisons to our historical operating results in assessing our results and strategic and operational decision-making. For more information about these supplementary financial measures, non-GAAP financial measures, and non-GAAP ratios, including (where applicable) definitions and explanations of how these measures provide useful information, refer to Section 12 – Supplementary financial measures and non-GAAP financial measures and ratios in the Q2 2025 Management's Discussion and Analysis dated July 31, 2025, which is available on our website at and on SEDAR+ at Below are quantitative reconciliations of non-GAAP measures for the three and six months ended June 30, 2025 and 2024: Net underwriting revenue 1 Included in Net expenses from reinsurance contracts held in our interim consolidated financial statements. Net claims and adjustment expenses 1 Included in Insurance service expenses and Other expenses in our interim consolidated financial statements. 2 Excludes the impact of discounting and risk adjustment. 3 Included in Insurance service expenses. 4 Included in Net expenses from reinsurance contracts held in our interim consolidated financial statements. Prior year claims development 1 Included in Insurance service expenses in our interim consolidated financial statements. 2 Included in Net expenses from reinsurance contracts held in our interim consolidated financial statements. Net underwriting expenses (in millions of dollars) Q2 2025 Q2 2024 2025 YTD 2024 YTD Net commissions 150.6 136.6 297.8 270.4 Net operating expenses 121.8 113.1 240.6 229.5 Net premium taxes 39.5 36.6 77.1 70.5 Net underwriting expenses 311.9 286.3 615.5 570.4 Net commissions (in millions of dollars) Q2 2025 Q2 2024 2025 YTD 2024 YTD Commissions 1 167.2 152.5 332.2 300.6 Commissions earned on ceded reinsurance 2 (17.2) (15.9) (35.8) (30.2) Remove: impact of exited lines 0.6 - 1.4 - Net commissions 150.6 136.6 297.8 270.4 1 Included in Insurance service expenses in our interim consolidated financial statements. 2 Included in Net expenses from reinsurance contracts held in our interim consolidated financial statements. Net operating expenses (in millions of dollars) Q2 2025 Q2 2024 2025 YTD 2024 YTD Operating expenses 1 123.7 113.1 245.4 229.5 Remove: impact of exited lines (1.9) - (4.8) - Net operating expenses 121.8 113.1 240.6 229.5 1 Included in Insurance service expenses in our interim consolidated financial statements. Net premium taxes (in millions of dollars) Q2 2025 Q2 2024 2025 YTD 2024 YTD Premium taxes 1 39.8 36.6 77.8 70.5 Remove: impact of exited lines (0.3) - (0.7) - Net premium taxes 39.5 36.6 77.1 70.5 1 Included in Insurance service expenses in our interim consolidated financial statements. Underwriting income (in millions of dollars) Q2 2025 Q2 2024 2025 YTD 2024 YTD Net underwriting revenue 1,048.8 949.4 2,050.6 1,854.7 Less: Net claims and adjustment expenses 662.3 569.4 1,305.5 1,135.8 Net commissions 150.6 136.6 297.8 270.4 Net operating expenses 121.8 113.1 240.6 229.5 Net premium taxes 39.5 36.6 77.1 70.5 Underwriting income 74.6 93.7 129.6 148.5 Operating net income, Operating income, Non-operating (losses) gains Net income attributable to common shareholders is the most directly comparable GAAP financial measure disclosed in our interim consolidated financial statements to operating net income, operating income, and non-operating (losses) gains, which are considered non-GAAP financial measures. 1 Included in Insurance service expenses and Net expenses from reinsurance contracts held in our interim consolidated financial statements. 2 Included in Other expenses in our interim consolidated financial statements. 3 Other represents miscellaneous expenses or revenues that in the view of management are not part of our insurance operations and are individually and in the aggregate not material, such as gains or losses pertaining to fintech venture capital funds. Distribution income 1 Distribution revenues includes commissions on policies underwritten by external insurance companies. 2 Included in Other expenses in our interim consolidated financial statements. These amounts exclude amortization of intangible assets recognized in business combinations and acquisition-related expenses. Below are quantitative reconciliations of non-GAAP ratios for the periods ended June 30, 2025 and 2024: ROE 1 Equity attributable to common shareholders is as at June 30, 2025 and 2024. 2 The return of restricted cash was prorated for the 115 days prior to October 23, 2024. 3 The issuance of common shares was prorated for the 345 days prior to June 11, 2025. 4 Average adjusted equity attributable to common shareholders is the average of adjusted equity attributable to common shareholders (equity attributable to common shareholders as shown on our interim consolidated balance sheets, adjusted for significant capital transactions or other unusual adjustments to equity, if applicable) at the end of the period and the end of the preceding 12-month period. Equity attributable to common shareholders and adjusted equity attributable to common shareholders as at June 30, 2023 was $2,696.2 million. Operating ROE 1 Equity attributable to common shareholders, excluding AOCI is as at June 30, 2025 and 2024. 2 The return of restricted cash was prorated for the 115 days prior to October 23, 2024. 3 The issuance of common shares was prorated for the 345 days prior to June 11, 2025. 4 Adjusted equity attributable to common shareholders, excluding AOCI, is equity attributable to common shareholders and AOCI each as shown on our interim consolidated balance sheets, adjusted for significant capital transactions or other unusual adjustments to equity, if applicable, and excluding unrealized gains or losses on FVTPL equity instruments. 5 Average adjusted equity attributable to common shareholders, excluding AOCI, is the average of adjusted equity attributable to common shareholders, excluding AOCI at the end of the period and the end of the preceding 12-month period. Adjusted equity attributable to common shareholders, excluding AOCI, as at June 30, 2023 was $2,707.1 million. SOURCE Definity Financial Corporation
Business Wire
14-07-2025
- Health
- Business Wire
New Guideline Improves Patient Access to Advanced Ultrasound Assessment of Liver Diseases and Transplant Options, Experts Say
CHICAGO--(BUSINESS WIRE)--Patients with liver diseases will have expanded access to advanced ultrasound imaging and transplant options, thanks to new policy allowing doctors to use contrast-enhanced ultrasound (CEUS) to help assess certain liver cancers and determine whether a liver is healthy enough for transplantation, according to experts affiliated with the International Contrast Ultrasound Society (ICUS). Patients with liver diseases will have expanded access to advanced ultrasound imaging and transplant options, thanks to new policy. Share 'This eliminates a significant roadblock to the appropriate use of CEUS at a time when patient lives are at stake,' said Dr. Yuko Kono, a transplant hepatologist and CEUS expert at the University of California San Diego and a member of the ICUS Board of Directors. ICUS was an early and strong supporter of the inclusion of CEUS as an approved imaging option for evaluation of a prevalent form of liver cancer known as hepatocellular carcinoma (HCC) under guidelines and policies established by the Organ Procurement and Transplantation Network (OPTN). While OPTN plays a crucial role in the evaluation and allocation of livers for transplantation, its guidelines and policies often have a broader impact on the clinical practice of hepatology and the use of CEUS to evaluate liver disease, according to Dr. Andrej Lyshchik, a professor of radiology at Thomas Jefferson University and CEUS expert. Dr. Lyshchik is also a member of the ICUS Board of Directors. 'We cannot underestimate the clinical importance of having CEUS officially included in our imaging tool boxes,' said Dr. Lyshchik. ICUS called the new OPTN policy 'a critical step toward modernizing the diagnostic framework for HCC.' ICUS also said that the policy change will 'promote consistency, reduce interpretation errors, and enhance communication with referring physicians' by aligning OPTN imaging classification criteria with a standardized reporting and data collection system known as LI-RADS ®. CEUS is a safe, low-cost diagnostic imaging tool that is routinely used worldwide to assess abdominal and pelvic organs and tumors, heart and vascular disease, chronic gastro-intestinal diseases and other serious medical conditions, and to monitor therapy. 'CEUS solves many clinical problems efficiently, without exposure to ionizing radiation, and with sensitivity and specificity comparable to and sometimes better than contrast-enhanced CT and MRI,' said Dr. Stephanie Wilson, a clinical professor of radiology and gastroenterology at the University of Calgary and Co-President of ICUS. Because ultrasound systems are readily available in many medical centers throughout the world and provide reliable diagnostic information in real time, CEUS often streamlines clinical workflows and reduces delays in diagnosis and treatment, she added. Three ultrasound contrast agents are currently approved by the US Food and Drug Administration: Definity (Lantheus); Lumason (Bracco Imaging) and Optison (GE Healthcare). ABOUT ICUS: The International Contrast Ultrasound Society (ICUS) is a nonprofit medical society dedicated to advancing the safe and medically appropriate use of contrast enhanced ultrasound (CEUS) to improve patient care globally. Membership in ICUS is free of charge and there is no fee for ICUS educational programs, CME credits, newsletters or other resources. To join ICUS and learn more about CEUS, visit and download ICUS CONNECT, the free ICUS mobile app.
Cision Canada
11-06-2025
- Business
- Cision Canada
Definity Financial Corporation Completes $385 Million Private Placements of Common Shares
/NOT FOR DISTRIBUTION TO THE U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/ WATERLOO, ON, /CNW/ - Definity Financial Corporation (TSX: DFY) announced today that it has completed its previously announced private placement of common shares with a syndicate of underwriters led by RBC Capital Markets as Sole Bookrunner (collectively the "Underwriters"), pursuant to which Definity has issued 4,631,000 common shares of the Company ("Common Shares") at an offering price of $66.65 per Common Share (the "Offering Price") for gross proceeds of approximately $309 million (the "Offering"). The Common Shares were offered by way of private placement to accredited investors and other exempt purchasers. The Common Shares are subject to a four-month hold period under applicable securities laws in Canada. As previously announced, in connection with the exercise by Healthcare of Ontario Pension Plan Trust Fund ("HOOPP") of its pre-emptive right under the Governance Agreement dated November 23, 2021 between Definity and HOOPP, HOOPP has purchased, on a private placement basis, 1,151,256 Common Shares at a price of $66.65 per Common Share, for aggregate gross proceeds of $76,731,212 (the "HOOPP Private Placement"). The net proceeds from the Offering and HOOPP Private Placement are intended to be used by Definity to fund a portion of the purchase price of the previously announced acquisition of the Canadian operations of Travelers (other than Travelers' Canadian surety business) for cash consideration of approximately $3.3 billion (the "Transaction"). The Transaction is not subject to any financing condition or contingency. In the event that the Transaction does not ultimately close, the net proceeds from the Offering are intended to be used by Definity for general corporate purposes. The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or under any state securities laws in the United States, and may not be offered, sold, directly or indirectly, or delivered within the United States or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from or not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws. This release does not constitute an offer to sell or a solicitation to buy Common Shares in the United States or in any other jurisdiction where such offer is or may be unlawful. About Definity Financial Corporation Definity Financial Corporation ("Definity" or the "Company", which include its subsidiaries where the context so requires) is one of the leading property and casualty insurers in Canada, with over $4.5 billion in gross written premiums for the 12 months ended March 31, 2025 and approximately $3.4 billion in equity attributable to common shareholders as at March 31, 2025. Cautionary Note Regarding Forward-Looking Information This news release contains "forward-looking information" within the meaning of applicable securities laws in Canada. Forward-looking information may relate to our future business, financial outlook and anticipated events or results and may include information regarding our financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, plans and objectives. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "aims", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "budget", "scheduled", "estimates", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "does not anticipate", "optimize", "strengthening", "leadership", "believes", or variations of such words and phrases or statements that certain actions, events or results "can", "may", "could", "delivers", "would", "might", "will", "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Specifically, forward-looking information in this news release includes, among other things, statements in respect of: the Transaction; the terms of the Transaction, including the anticipated purchase price; expectations regarding Transaction financing; and the intended use of the net proceeds of the Offering and the HOOPP Private Placement. Statements containing forward-looking information are not historical facts, but instead represent management's expectations, estimates and projections regarding possible future events or circumstances. Forward-looking information in this news release is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. In addition to other estimates and assumptions which may be identified herein, estimates and assumptions have been made regarding, among other things: that the Transaction will be effected as currently proposed; that sources of funding of the Transaction will be available in a timely manner on terms acceptable to Definity; that all requisite approvals will be obtained in a timely manner in form and substance acceptable to Definity; that the Transaction will otherwise proceed on the currently anticipated timing; that the expected benefits of the Transaction will be realized; and that the applicable economic and political environments and current industry conditions will generally continue. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that we considered appropriate and reasonable as at the date such statements are made, and are subject to many factors that could cause our actual results, performance or achievements, or other future events or developments, to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors: Definity's ability to continue to offer competitive pricing or product features or services that are attractive to customers; Definity's ability to appropriately price its insurance products to produce an acceptable return, particularly in provinces where the regulatory environment requires auto insurance rate increases to be approved or that otherwise impose regulatory constraints on auto insurance rates; Definity's ability to accurately assess the risks associated with the insurance policies that it writes; Definity's ability to assess and pay claims in accordance with its insurance policies; Definity's ability to obtain adequate reinsurance coverage to manage risk; Definity's ability to accurately predict future claims frequency or severity, including the frequency and severity of weather-related events and the impact of climate change; Definity's ability to address inflationary cost pressures through pricing, supply chain, or cost management actions; the occurrence of unpredictable catastrophe events; litigation and regulatory actions, including potential claims in relation to demutualization and our IPO and unclaimed demutualization benefits and the tax treatment of related amounts transferred to the Company, and COVID-19-related class- action lawsuits that have arisen and which may arise, together with associated legal costs; unfavourable capital market developments, interest rate movements, changes to dividend policies or other factors which may affect our investments or the market price of the Common Shares; changes associated with the transition to a low-carbon economy, including reputational and business implications from stakeholders' views of our climate change approach or of our environmental or climate change–related representations (i.e. "greenwashing"), that of our industry, or that of our customers; Definity's ability to successfully manage credit risk from its counterparties; foreign currency fluctuations; Definity's ability to meet payment obligations as they become due; Definity's ability to maintain its financial strength rating or credit rating; Definity's dependence on key people; Definity's ability to attract, develop, motivate, and retain an appropriate number of employees with the necessary skills, capabilities, and knowledge; Definity's ability to appropriately collect, store, transfer, and dispose of information; Definity's reliance on information technology systems and software, internet, network, data centre, voice or data communications services and the potential disruption or failure of those systems or services, including disruption as a result of cyber security risk or of a third-party service provider; failure of key service providers or vendors to provide services or supplies as expected, or comply with contractual or business terms; Definity's ability to obtain, maintain and protect its intellectual property rights and proprietary information or prevent third parties from making unauthorized use of our technology; Definity's ability to effectively govern the use of models, artificial intelligence, and generative AI technology; compliance with and changes in legislation or its interpretation or application, or supervisory expectations or requirements, including changes in the scope of regulatory oversight, effective income tax rates, risk-based capital guidelines, accounting standards, and generally accepted actuarial techniques; changes in domestic or foreign government policies, such as cross-border tariffs or trade policies, may negatively impact the Canadian economy and the P&C insurance industry and/or exacerbate other risks to Definity; failure to design, implement and maintain effective controls over financial reporting and disclosure which could have a material adverse effect on our business; deceptive or illegal acts undertaken by an employee or a third party, including fraud in the course of underwriting insurance or administering insurance claims; Definity's ability to respond to events impacting its ability to conduct business as normal; Definity's ability to implement its strategy or operate its business as management currently expects; general business, economic, financial, political, and social conditions, particularly those in Canada; the emergence or continuation of widespread health emergencies or pandemics, and their impact on local, national, or international economies, as well as their heightening of certain risks that may affect our business or future results; the competitive market environment and cyclical nature of the P&C insurance industry; the introduction of advanced technologies, disruptive innovation or alternative business models by current market participants or new market entrants; distribution channel risk, including Definity's reliance on brokers to sell its products; Definity's dividend payments being subject to the discretion of its board of directors and dependent on a variety of factors and conditions existing from time to time; the discontinuance, modification, or failure to renew or complete Definity's normal course issuer bid; Definity's dependence on the results of operations of its subsidiaries and the ability of the subsidiaries to pay dividends; Definity's ability to manage and access capital and liquidity effectively; Definity's ability to successfully identify, complete, integrate and realize the benefits of acquisitions or manage the associated risks, including with respect to the Transaction; management's estimates and judgments in respect of IFRS 17 and its impact on various financial metrics; periodic negative publicity regarding the insurance industry, Definity, or Definity Insurance Foundation; and management's estimates and expectations in relation to interests in the broker distribution channel and the resulting impact on growth, income, and accretion in various financial metrics. If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. The opinions, estimates or assumptions referred to above and described in greater detail in Section 11 – "Risk Management and Corporate Governance" of our MD&A for the year ended December 31, 2024 should be considered carefully by readers. To the extent any forward-looking information in this presentation constitutes a "financial outlook" within the meaning of applicable securities laws, such information is being provided to assist investors in understanding the potential financial impact of the Transaction. Such information may not be appropriate for other purposes. Although we have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, the factors above are not intended to represent a complete list and there may be other factors not currently known to us or that we currently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information, which speaks only as at the date made. The forward-looking information contained in this news release represents our expectations as at the date of this news release (or as at the date they are otherwise stated to be made) and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws in Canada. All of the forward-looking information contained in this news release is expressly qualified by the foregoing cautionary statements. SOURCE Definity Financial Corporation
Toronto Star
04-06-2025
- Business
- Toronto Star
Definity signs deal to buy Travelers' Canadian operations for $3.3 billion
WATERLOO - Definity Financial Corp. says it will acquire most of the Canadian operations of U.S. insurance firm Travelers for $3.3 billion. Definity says the deal will make it the fourth largest property and casualty insurer in Canada.
Globe and Mail
03-06-2025
- Business
- Globe and Mail
Why foreign property and casualty insurers are quitting Canada
In the fragmented domestic auto and home insurance industry, the big question is: Who will be next to exit? Last week, U.S. insurance giant Travelers surprised the market by selling its Canadian operations to Waterloo-based Definity Financial Corp. DFY-T for $3.3-billion. New York-based Travelers is the latest in a string of foreign-owned property and casualty (P&C) insurance company to quit the domestic market. Over the past decade, global insurers such as State Farm, AXA and Hartford opted to exit. While there have been numerous departures, there are still more than 150 P&C players competing in a consolidating sector where scale and marketing heft are increasingly critical to success. The vast majority have single-digit market share – Travelers had roughly 2 per cent of the market – and would need to spend billions to bulk up. There are also a handful of Canadian companies – including market leader Intact Financial Corp., Definity, Desjardins Group, Co-operators, Fairfax Financial Holdings Ltd. and Toronto-Dominion Bank – with ambitions to dominate the sector. Analysts say further auto and home insurer consolidation is as inevitable as highway fender benders on holiday weekends. Toronto-based Intact has moved onto the global stage as part of its consolidation strategy. In 2020, Intact and a Danish insurer acquired London-based RSA Insurance Group PLC, a major player in the Canadian market, for $12.4-billion. Institutional investors are willing to put money into consolidators such as Intact and Definity. Three larger domestic pension plans committed capital to the RSA purchase. Analysis: Why investors love Definity's big acquisition, helping the home and auto insurer extend its hot run For ambitious chief executives such as Intact CEO Charles Brindamour, an accomplished integrator of insurance businesses, the obvious next targets are Allstate Insurance Co. of Canada, which has a Chicago-based parent, and Aviva Insurance Co. of Canada, with an owner in London. Both companies have larger market share than Travelers, but similar challenges when it comes to further expanding their platforms. Both Allstate and Aviva will be looking at the economics behind the Definity deal and making a go-big-or-go-home decision. Travelers built its Canadian platform through acquisitions, highlighted by the 2013 purchase of Dominion of Canada General Insurance Co. for more than $1-billion. (Definity's acquisition of the company brings a business founded by Sir John A. Macdonald in 1887 back into Canadian hands.) Part of Travelers' expansion strategy centred on using a familiar U.S. brand – a red umbrella – to sell insurance north of the border. The campaign never really caught on. In part, that reflects a P&C industry that sells through independent agents, who care more about commissions than umbrellas. It also reflects domestic insurers spending heavily on advertising to sell online through flanker brands such Intact's Belair Direct and Definity-owned Sonnet. These campaigns drowned out Traveler's marketing. Travelers decided to sell at a time when industry dynamics favour P&C insurers, with what's known as a hard market on pricing. The Canadian division sold for 1.8 times its book value, an impressive premium. Travelers plans to use US$700-million of the sale's proceeds to buy back its own stock, a shareholder-friendly move. In soft insurance markets, when P&C insurers discount their rates to win customers, acquirers will offer far smaller premiums to book value on potential purchases. For Allstate and Aviva, this is a seller's market, one that may not last. Definity paid up for Travelers, and devoted the better part of a year negotiating the takeover, because the transaction vaulted the insurer into the country's top five players. The additional scale translates into $100-million a year in annual savings, a significant boost in the company's return on equity and a 30-per-cent increase in premiums. Definity went public in 2021 to do this sort of takeover, after being founded in 1871 as mutual company Economical Insurance, owned by its policyholders. CEO Rowan Saunders said in announcing the Travelers deal that 'this acquisition demonstrates our commitment to long-term growth and competitiveness.' It also avoids having Definity show up on lists of potential takeover targets, alongside Allstate and Aviva. As part of the initial public offering, the company and regulators struck a four-year moratorium on takeovers of Definity. The standstill agreement expires this fall. Buying Travelers should make Definity too large or too expensive for a domestic rival such as Intact to acquire. Or an even more tempting prize.
