Definity Financial Corp. · TSX:DFY
Definity Financial — Q4 2024 Earnings Presentation
22 slides from Definity Financial's earnings presentation, Feb 14, 2025
Slide 1: Q4-2024 Quarterly Report
Q4-2024 QUARTERLY REPORT February 14, 2025
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 The Company’s audited consolidated financial statements and accompanying notes as at and for the year ended December 31, 2024 have been prepared in accordance with International Financial Reporting Standards (“IFRS” or “GA
Slide 4: Rowan Saunders, President & Chief Executive Officer
ROWAN SAUNDERS President & Chief Executive Officer
Slide 5: Financial Highlights
5 FINANCIAL HIGHLIGHTS Operating EPS(1) Gross Written Premiums(1) Combined Ratio(1) Q4-2024 $0.95 $1.1B +7.4% y/y 90.3% (9.0% adjusted for exit of Sonnet Alberta Auto) FY-2024 $2.66 $4.4B +11.1% y/y 94.5% Operating ROE (TTM)(1) Book Value per Share(1) Financial Capacity(1,2) 10.6% $29.13 +17.6% y/y
Slide 6: Exceptional Track Record Since IPO
6 EXCEPTIONAL TRACK RECORD SINCE IPO (1) (1) GWP (millions) Combined ratio $4,448 95.9% $4,005 94.2% 94.5% $3,662 93.1% $3,258 ~$1.2B 94.4% growth average 2021 2022 2023 2024 2021 2022 2023 2024 Book value per share(1) Quarterly dividends per share $29.13 $0.1875 $24.78 $0.16 $22.30 $0.1375 $20.68 $
Slide 7: Q4-2024 Consolidated Performance
7 Q4-2024 CONSOLIDATED PERFORMANCE ($ in millions, except as otherwise noted) Q4-24 Q4-23 Δ FY-24 FY-23 Δ Gross Written Premiums(1) (TTM) ($ in millions) Gross Written Premiums(1) $1,109.5 $1,033.2 7.4% $4,448.1 $4,005.2 11.1% $4,372 $4,448 Adjusted for exit of Sonnet Alberta Auto 9.0% $4,269 $4,114
Slide 8: 12-Month Industry Outlook
8 12-MONTH INDUSTRY OUTLOOK Personal Auto Personal Property Commercial Insurance We expect conditions in auto lines We expect market conditions in While we expect overall commercial to remain firm as insurers aim to property lines to harden over the lines market conditions to remain keep pace with t
Slide 9: Key Financial Metrics
9 KEY FINANCIAL METRICS GWP(1) Growth Combined Ratio(1) Operating ROE(1) FY-2024 FY-2024 FY-2024 11.1% 94.5% 10.6% TARGET(2) REVISED TARGET(2) TARGET(2) Grow GWP at a rate of Achieve a sub-95% full Generate a full year operating ROE upper single digit to 10% year combined ratio in the range of 10% t
Slide 10: Our Leading Broker Platform
10 OUR LEADING BROKER PLATFORM Our national broker platform provides ongoing opportunities to scale and grow the earnings profile of the business Acquired Top 10 Broker with Year Activity Year-End GWP(1) ~$1.2B GWP(1) 2026 Target 2022 1 acquisition ~$500M ~$300M GWP 12 ~$900M GWP $1.5B+ 2023 6 acqui
Slide 11: Philip Mather, Executive Vice-President & Chief Financial Officer
PHILIP MATHER Executive Vice-President & Chief Financial Officer
Slide 12: Q4-2024 Personal Auto
12 Q4-2024 PERSONAL AUTO ($ in millions, except as otherwise noted) Q4-24 Q4-23 Δ FY-24 FY-23 Δ Gross Written Premiums(1) (TTM) ($ in millions) Gross Written Premiums1 $438.7 $416.0 5.5% $1,867.4 $1,657.1 12.7% $1,845 $1,867 Adjusted for exit of Sonnet Alberta Auto 9.6% $1,799 $1,713 $1,657 Net Unde
Slide 13: Q4-2024 Personal Property
13 Q4-2024 PERSONAL PROPERTY ($ in millions, except as otherwise noted) Q4-24 Q4-23 Δ FY-24 FY-23 Δ Gross Written Premiums(1) (TTM) ($ in millions) Gross Written Premiums(1) $295.2 $278.0 6.2% $1,183.9 $1,113.1 6.4% $1,184 $1,167 $1,146 $1,124 $1,103 $1,113 $1,071 Net Underwriting Revenue(1) $279.3
Slide 14: Q4-2024 Commercial Insurance
14 Q4-2024 COMMERCIAL INSURANCE ($ in millions, except as otherwise noted) Q4-24 Q4-23 Δ FY-24 FY-23 Δ Gross Written Premiums(1) (TTM) ($ in millions) $1,397 Gross Written Premiums(1) $375.6 $339.2 10.7% $1,396.8 $1,235.0 13.1% $1,324 $1,360 $1,277 $1,235 $1,193 Net Underwriting Revenue(1) $293.3 $2
Slide 15: Q4-2024 Consolidated Profitability
15 Q4-2024 CONSOLIDATED PROFITABILITY ($ in millions, except as otherwise noted) Q4-24 Q4-23 Δ FY-24 FY-23 Δ Operating Income (1) ($ in millions) Underwriting Income(1,2) $97.0 $87.0 $10.0 $212.4 $144.9 $67.5 $146.2 $147.0 $135.3 $17.2 $11.4 $8.8 Net Investment Income(3) $51.1 $49.4 $1.7 $198.2 $179
Slide 16: 2025 Reinsurance Program
16 2025 REINSURANCE PROGRAM Successful placement of all Definity key treaties with effective CAT volatility management through increased scale and reduced co-participation CAT Excess of Loss Structure • $2,075M $2,075M Upper limit remained flat at $2.075B • Net company attachment point increased fro
Slide 17: Q4-2024 Balance Sheet Strength
17 Q4-2024 BALANCE SHEET STRENGTH ($ in millions, except as otherwise noted) Dec 31-23 Sep 30-24 Dec 31-24 Consolidated Book Value q/q Δ Total assets $7,260 $7,532 $7,693 ($ in millions) Investments $4,931 $5,069 $5,271 $150 Total liabilities $4,253 $4,272 $4,187 ($18) ($18) $110 $6 Insurance contra
Slide 18: Q4-2024 Capital Management
18 Q4-2024 CAPITAL MANAGEMENT Capital Management Actions Financial Capacity q/q Δ ($ in millions) • Continued deployment through acquisitions in our national $150 $87 $6 ($62) broker platform – $800M+ over 15 acquisitions since 2022, ($18) including more than $170M(4) over 9 acquisitions in 2024 $11
Slide 19: Our Strategy
19 OUR STRATEGY STRATEGIC OBJECTIVES OUR PURPOSE Building a better world Consistently Position Definity as Become one of the by helping our clients Maintain our digital deliver disciplined a purpose-driven five largest P&C and communities leadership financial sustainability insurers in Canada adapt
Slide 20: Questions?
9B, QUESTIONS? definity.
Slide 21: Contact Us
21 CONTACT US Investor Relations Corporate Communications Definity Financial Corporation Sarah Attwells Investor Relations Department AVP, Corporate Communication 333 Bay St, Suite 2900 (C) 226-753-1130 Toronto, ON M5H 2R2 sarah.attwells@definity.com (TF) 1-866-902-4724 IR@definity.com General Inqui
Slide 22: Definity
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