Definity Financial Corp. · TSX:DFY
Definity Financial — Q1 2026 Earnings Presentation
36 slides from Definity Financial's earnings presentation, 2026
Slide 1: Building a Canadian Champion
Building a Canadian Champion Investor Presentation Q1-2026
Slide 2: Advisory Regarding Forward-Looking Information
2 Investor Presentation 2 Advisory Regarding Forward-Looking Information • This presentation contains forward-looking information. • Forward-looking information is information regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions
Slide 3: Supplementary Financial Measures and Non-GAAP Financial Measures and Ratios
3 Investor Presentation 3 Supplementary Financial Measures and Non-GAAP Financial Measures and Ratios The Company’s interim financial statements and accompanying notes as at and for the quarter ended March 31, 2026 have been prepared in accordance with International Financial Reporting Standards (“I
Slide 4: Company Overview
Company Overview
Slide 5: Company Highlights
5 Investor Presentation 5 Company Highlights Leading Canadian P&C Insurer in a Large and Growing Market Superior Customer and Broker Experience Highly Scalable Digital Platforms and Growing Broker Distribution Capabilities Market Leading Commercial Insurance Capabilities Sophisticated Pricing Method
Slide 6: Definity Is a Leading Canadian P&C Insurer
6 Investor Presentation 6 Definity Is a Leading Canadian P&C Insurer We are a personal and commercial P&C insurer offering auto, property, liability, pet, and specialty insurance solutions through multiple distribution channels ~$6.3B IN GROSS WRITTEN PREMIUMS(1,2) TTM Q1-2026 Over 150 Years of Oper
Slide 7: Superior customer and broker experience
7 Investor Presentation 7 Superior customer and broker experience Our digital platforms, Sonnet and Vyne, enable our customers and brokers to access competitively priced insurance in a fast, easy to use manner IMPACT EVERY ASPECT OF THE VALUE CHAIN We believe that our sophisticated digital platforms
Slide 8: Using Analytics & AI to create business value
8 Investor Presentation 8 Using Analytics & AI to create business value 200+ data & analytics practitioners Over 25 years of high-quality, ALL LINES PERSONAL LINES COMMERCIAL LINES digitized data and access to extensive third-party datasets Predictive modelling evaluates Predictive models are Numero
Slide 9: Profitable growth with a diversified earnings profile
9 Investor Presentation 9 Profitable growth with a diversified earnings profile GROSS WRITTEN PREMIUMS(1) OPERATING INCOME(1) ($ in millions) $4,808 ($ in millions) $4,448 $1,395 $4,005 $558.7 $3,662 $3,258 $1,030 $62.0 $157.5 $11.2 ~$1.6B growth $409.6 $215.7 $309.1 $323.7 $54.4 $79.9 $290.9 $100.5
Slide 10: Driving profitable growth in Personal Auto
10 Investor Presentation 10 Driving profitable growth in Personal Auto by leveraging digital assets and broker relationships PERSONAL AUTO GWP(1) GROWTH PERSONAL AUTO COMBINED RATIO(1,3) ($ in millions) 35.3% $2,001 YoY $1,867 98.3% 97.5% 97.5% $594 96.7% $1,657 $1,579 95.2% 95.1% $1,453 91.2% $439
Slide 11: Solid growth in Personal Property
11 Investor Presentation 11 Solid growth in Personal Property with a strong track record of underwriting PERSONAL PROPERTY GWP(1) GROWTH PERSONAL PROPERTY COMBINED RATIO(1,3) ($ in millions) 37.3% 70 bps YoY improvement excl. CATs(1) $1,290 99.3% 98.6% $1,184 96.4% 96.3% $1,113 $350 94.1% 9.4% $1,01
Slide 12: Growing Commercial Insurance capabilities
12 Investor Presentation 12 Growing Commercial Insurance capabilities with a meaningful competitive advantage in underwriting COMMERCIAL INSURANCE GWP(1) GROWTH COMMERCIAL INSURANCE COMBINED RATIO(1,3) ($ in millions) 34.0% 340 bps YoY increase $1,517 $1,397 93.9% 91.0% $1,235 $451 90.1% 90.5% 89.4%
Slide 13: Our Leading Broker Platform
Investor Presentation 13 Our Leading Broker Platform Benefitting from a stream of recurring income from our broker distribution platform Acquired Ranks among the Top 10 Brokers with Year Activity Year-End GWP(2) ~$1.6B GWP(2) 2027 Target 2022 1 acquisition ~$500M 2023 2024 6 acquisitions 9 acquisiti
Slide 14: A heightened focus on culture and proven executive bench strength
14 Investor Presentation 14 A heightened focus on culture and proven executive bench strength ✓ Highly experienced and stable leadership core, with deep expertise across P&C insurance and an average executive tenure at Definity of approximately eight years, supporting strong continuity and execution
Slide 15: Engagement
15 Investor Presentation 15 Definity, It’s Better Here Company Recognition 2024-2026 Our engagement journey Q1 2026 Key Statistics 80% 80% 77% 79% 81% 65% 72% 97% retention rate of Definity employee 54% Engagement (1) high-performers 89% of all leadership roles at Definity are filled by internal can
Slide 16: Sustainability Highlights
16 Investor Presentation 16 Sustainability Highlights Our purpose: Building a better world by helping our clients and communities adapt and thrive. ENVIRONMENT SOCIAL GOVERNANCE • Outperformed 2025 operational • Exceeded 2026 representation • 11 of 12 Board directors are emissions target of -30% by
Slide 17: Financial Performance and Analysis
Financial Performance and Analysis
Slide 18: Our Financial Targets for 2026
18 Investor Presentation 18 Our Financial Targets for 2026 35.4% Gross Written Premiums(1) 15.2% 12.4% 11.7% 9.4% 11.1% 8.8% (3) Grow premiums by 35% over 2025 to $6.5B 2020 2021 2022 2023 2024 2025 Q1-26 Combined Ratio(1,2) 94.6% 94.2% 95.9% 94.5% 93.1% 92.9% 91.6% Achieve a sub-95% full year combi
Slide 19: Balance Sheet Strength
19 Investor Presentation 19 Balance Sheet Strength BOOK VALUE DEBT CAPITALIZATION ($ in millions) Our leverage target remains at 25%, in-line with previously provided guidance and other rated Canadian P&C peers $118.1 26.8% 25.0% ($54.2) ($25.8) ($18.1) Q1-26 Target $4,050 $4,070 CREDIT RATINGS Fina
Slide 20: Capital Management
20 Investor Presentation 20 Capital Management FINANCIAL CAPACITY(1) DIVIDEND GROWTH(2) 2,847 2,892 2,674 72% increase in dividends per share since our IPO 707 717 1,792 1,600 $0.2150 $0.2150 $0.1875 $0.1875 $0.1875 $0.1875 1,147 $0.1600 $0.1600 $0.1600 $0.1600 1,080 $0.1375 $0.1375 $0.1375 $0.1375
Slide 21: Prudent Approach to Reserving and Reinsurance
21 Investor Presentation 21 Prudent Approach to Reserving and Reinsurance PRUDENT RESERVING PRACTICES ROBUST REINSURANCE FRAMEWORK • Closely monitor adequacy of reserves Structured to provide protection against individual large losses and catastrophe events above a certain threshold and • Favourable
Slide 22: High-quality Investment Portfolio
22 Investor Presentation 22 High-quality Investment Portfolio NET INVESTMENT INCOME ($M) PRUDENT ASSET FIXED INCOME ALLOCATION PORTFOLIO(1) We expect net investment income for FY 2026 of approximately $320 million Cash and ST BB (2) 0.1% investments, BBB 3.6% $215.7 6.6% (3) (4) $198.2 Others, A Not
Slide 23: Acquisition Update
Acquisition Update
Slide 24: Travelers Transaction Early Wins
24 Investor Presentation 24 Travelers Transaction Early Wins Our overall conviction on the deal is higher, and we have greater confidence in the 200bps+ of OROE benefit • Acquisition costs are tracking ~10% below our expectations, inclusive of the Earlier and more higher-than-expected capital market
Slide 25: Travelers Integration Update
25 Investor Presentation 25 Travelers Integration Update Focused integration efforts across the organization enabled on-time start for policy conversion, with strong broker support, robust communications plan and back-office foundation in place New business intake channels harmonized, and all new bu
Slide 26: Q1-2026 Synergy Progress and Costs
26 Investor Presentation 26 Q1-2026 Synergy Progress and Costs • We expect to realize expense synergies of at least $100M Acquisition Costs $100M (pre-tax) within 36 months of close, with $90M approximately one-third to earn into • We have incurred ~$93M of acquisition $80M underwriting income in th
Slide 27: Appendix
Appendix
Slide 28: 12-month Industry Outlook
28 Investor Presentation 28 12-month Industry Outlook • We expect overall conditions in personal auto to remain firm as insurers aim to keep pace with the combined impact of loss cost Personal trends, ongoing regulatory constraints in Alberta, and uncertainty related to the extent and impact of macr
Slide 29: Financial Results
29 Investor Presentation 29 Financial Results (in millions of Canadian dollars, except as otherwise noted - unaudited) Q1 2026 Q1 2025 FY 2025 FY 2024 FY 2023 FY 2022 Insurance revenue 1,823.9 1,111.9 4,677.1 4,258.4 3,850.3 3,485.7 Insurance service expenses (1,588.0) (958.0) (3,930.3) (3,672.8) (3
Slide 30: Selected Financial Ratios
30 Investor Presentation 30 Selected Financial Ratios Q1 2026 Q1 2025 FY 2025 FY 2024 FY 2023 FY 2022 Gross written premium1 YOY Growth 35.4% 7.8% 8.1% 11.1% 9.4% 12.4% Claims ratio1 62.4% 64.2% 62.0% 64.5% 65.1% 61.7% Expense ratio1 30.5% 30.3% 29.6% 30.0% 30.8% 32.5% Combined ratio1 92.9% 94.5% 91
Slide 31: Balance Sheet
31 Investor Presentation 31 Balance Sheet (in millions of Canadian dollars, except as otherwise noted) Q1 2026 Q1 2025 FY 2025 FY 2024 FY 2023 FY 2022 Total cash and investments 9,279.0 5,599.3 7,252.8 5,592.6 5,128.5 5,097.7 Restricted cash - - - 14.8 244.0 302.1 Income taxes receivable 48.9 15.7 0
Slide 32: Financial Strength and Issuer Ratings
32 Investor Presentation 32 Financial Strength and Issuer Ratings Issuer, debt, and financial strength ratings have been assigned to Definity, and its subsidiary Definity Insurance, where applicable, by major credit rating agencies. The ratings are reflective of Definity’s strong capitalization and
Slide 33: Our Strategy
Investor Presentation 33 Our Strategy OUR PURPOSE OUR AMBITION OUR PROMISE Building a better world by helping our To be one of Canada’s leading and most Making insurance better clients and communities adapt and thrive innovative P&C insurers STRATEGIC Become one of the three Grow our digital and AI
Slide 34: Further Advisory Regarding Forward-Looking Information
34 Investor Presentation 34 Further Advisory Regarding Forward-Looking Information 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 factor
Slide 35: Contact Us
Investor Presentation 35 Contact Us INVESTOR RELATIONS Dennis Westfall General Investor Inquiries Vice President, Investor Relations TOLL-FREE: 1-866-902-4724 PHONE: 416-435-5568 EMAIL: IR@definity.com EMAIL: dennis.westfall@definity.com CORPORATE Sarah Attwells GENERAL Definity Financial Corporatio
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