Definity Financial Corp. · TSX:DFY
Definity Financial — Q4 2021 Earnings Presentation
19 slides from Definity Financial's earnings presentation, Feb 11, 2022
Slide 1: Q4-2021 Quarterly Report
Q4-2021 QUARTERLY REPORT February 11, 2022
Slide 2: Advisory Regarding Forward-Looking Information
2 ADVISORY REGARDING FORWARD-LOOKING INFORMATION This presentation 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 inf
Slide 3: Supplementary Financial Measures and Non-GAAP Financial Measures and Ratios
3 SUPPLEMENTARY FINANCIAL MEASURES AND NON-GAAP FINANCIAL MEASURES AND RATIOS We prepare our financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (the “IASB”) (referred to herein as “GAAP” or “IFRS”). We measure
Slide 4: Rowan Saunders, President & Chief Executive Officer
ROWAN SAUNDERS President & Chief Executive Officer
Slide 5: Q4-2021 Financial Highlights
5 Q4-2021 FINANCIAL HIGHLIGHTS Q4-2021 Operating EPS(1) Q4-2021 GWP Q4-2021 Combined Ratio(1) $0.42 $847M / 12.0% YoY 94.6% Book Value per Share(1) Financial Capacity(1,2) Operating ROE (TTM)(1) $20.68 / 18% YoY ~$1 Billion 11.5% Inaugural dividend of $0.175 per share(3) inclusive of $0.05 per share
Slide 6: Company Update
6 COMPANY UPDATE Strong foundation for continued progress Transformative initiatives expected to generate profitable growth “I am proud of the company we’re Rapidly scaling Sonnet digital direct business building together and Scale and underwriting improvements are benefiting results am confident th
Slide 7: 12-Month Industry Outlook
7 12-MONTH INDUSTRY OUTLOOK Personal Personal Commercial Auto Property Insurance • We expect conditions in auto to firm • We expect the personal property • We expect the market to remain firm as claims frequency reverts to pre- market to remain firm throughout 2022 throughout 2022 as carriers focus
Slide 8: Key Financial Metrics
8 KEY FINANCIAL METRICS Gross Written Premium Growth Combined Ratio(1) Operating ROE(1) Q4-2021 / FY2021 Q4-2021 / FY2021 TTM 12.0% / 14.8% 94.6% / 93.1% 11.5% TARGET(2) TARGET(2) TARGET(2) Grow GWP annually at an Maintain an annual Generate an annual average rate of combined ratio in the mid-90s Op
Slide 9: Philip Mather, Executive Vice-President & Chief Financial Officer
PHILIP MATHER Executive Vice-President & Chief Financial Officer
Slide 10: Q4-2021 Personal Auto
10 Q4-2021 PERSONAL AUTO ($ in millions, except as otherwise noted) Q4-21 Q4-20 Δ FY21 FY20 Δ Gross Written Premiums (TTM) ($ in millions) GWP $355.5 $339.2 4.8% $1,426.5 $1,335.4 6.8% $1,427 $1,398 $1,410 $1,335 $1,348 $1,306 $1,319 NEP $344.3 $327.4 5.2% $1,332.5 $1,251.2 6.5% $1,292 $1,262 Underw
Slide 11: Q4-2021 Personal Property
11 Q4-2021 PERSONAL PROPERTY ($ in millions, except as otherwise noted) Q4-21 Q4-20 Δ FY21 FY20 Δ Gross Written Premiums (TTM) ($ in millions) GWP $237.1 $201.1 17.9% $894.6 $750.7 19.2% $895 $859 $819 $779 NEP $203.7 $173.3 17.5% $761.2 $641.7 18.6% $751 $719 $685 $632 $655 Underwriting $13.8 $38.1
Slide 12: Q4-2021 Commercial Insurance
12 Q4-2021 COMMERCIAL INSURANCE ($ in millions, except as otherwise noted) Q4-21 Q4-20 Δ FY21 FY20 Δ Gross Written Premiums (TTM) ($ in millions) GWP $254.0 $215.6 17.8% $910.3 $728.6 24.9% $910 $872 $827 $770 NEP $197.0 $164.8 19.5% $739.9 $615.8 20.2% $729 $688 $656 $617 $630 Underwriting $8.8 $18
Slide 13: Q4-2021 Consolidated Profitability
13 Q4-2021 CONSOLIDATED PROFITABILITY ($ in millions, except as otherwise noted) Q4-21 Q4-20 Δ FY21 FY20 Δ Operating Income (Loss)(1) ($ in millions) GWP $846.6 $755.9 12.0% $3,231.4 $2,814.7 14.8% $97.9 $1.5 $80.3 $62.9 $65.9 $68.5 $79.6 Claims Ratio(1,2) 63.1% 57.1% 6.0 pts 60.8% 62.3% (1.5) pts $
Slide 14: Q4-2021 Investment Portfolio
14 Q4-2021 INVESTMENT PORTFOLIO Net Investment Income (TTM) Dividend & Interest Income ($ in millions) ($ in millions) $105 $106 $26.7 $27.5 $26.2 $25.7 $27.0 $25.7 $25.1 $24.3 $25.2 $103 $102 $100 $6.3 $7.2 $7.2 $7.3 $7.4 $7.6 $7.7 $8.5 $97 $96 $95 $97 $6.9 $20.4 $20.3 $19.0 $18.4 $17.7 $17.6 $18.0
Slide 15: Q4-2021 Capital
15 Q4-2021 CAPITAL ($ in millions, except as otherwise noted) Q4-21 Q4-20 Δ Minimum Capital Test Trend(1) Total assets $7,891 $6,620 $1,271 275% 272% 272% 275% 268% Investments $5,366 $4,366 $1,000 253% Total liabilities $5,495 $4,802 $693 239% 242% Claim liabilities $3,336 $3,026 $310 223% Total eq
Slide 16: Our Strategy
16 OUR STRATEGY STRATEGIC OBJECTIVES Consistently OUR PURPOSE Become one of the Maintain our digital Sustain our demonstrate five largest P&C underwriting Building a better world by leadership disciplined financial Insurers in Canada profitability helping our clients and management communities adapt
Slide 17: Questions?
"9B, QUESTIONS? definity.
Slide 18: Contact Us
18 CONTACT US Investor Relations Corporate Communications Definity Financial Corporation Sarah Attwells Investor Relations Department Director, Corporate Affairs 121 King St West, Suite 1400, (C) 416-986-9360 Toronto, ON M5H 3T9 sarah.attwells@definityfc.com (TF) 1-866-902-4724 IR@definityfc.com Gen
Slide 19: definity.
definity. © 2022 Definity Financial Corporation. Intellectual property belongs to Definity Financial Corporation and/or its affiliates.