Definity Financial Corp. · TSX:DFY
Definity Financial — Q1 2025 Earnings Presentation
21 slides from Definity Financial's earnings presentation, May 9, 2025
Slide 1: Q1-2025 Quarterly Report
Q1-2025 QUARTERLY REPORT May 9, 2025
Slide 2: Advisory Regarding Forward-Looking Information
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 and courses of action,
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 unaudited condensed interim consolidated financial statements and accompanying notes as at and for the quarter ended March 31, 2025 have been prepared in accordance with International Financial Reporting Stan
Slide 4: Rowan Saunders, President & Chief Executive Officer
ROWAN SAUNDERS President & Chief Executive Officer
Slide 5: Q1-2025 Financial Highlights
5 Q1-2025 FINANCIAL HIGHLIGHTS Operating EPS(1) Gross Written Premiums(1) Combined Ratio(1) $0.65 $1.03B 94.5% 9.6% y/y (adjusted for exited lines) Book Value per Share(1) Financial Capacity(1,2) Operating ROE (TTM)(1) $29.52 ~$1.8B 10.3% 16.2% y/y 1 This is a supplementary financial measure, non-GA
Slide 6: 12-Month Industry Outlook
6 12-MONTH INDUSTRY OUTLOOK Personal Auto Personal Property Commercial Insurance We expect conditions in auto We expect market conditions in We expect overall commercial lines to remain firm as insurers personal property to remain lines market conditions to aim to keep pace with the firm over the ne
Slide 7: Key Financial Metrics
7 KEY FINANCIAL METRICS GWP(1) Growth Combined Ratio(1) Operating ROE(1) Q1-2025 y/y Q1-2025 Q1-2025 TTM 9.6% (Adjusted for exited lines) 94.5% 10.3% TARGET(2) 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
Slide 8: Our Leading Broker Platform
8 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(1,2) ~$1.3B GWP(2) 2026 Target 2022 1 acquisition ~$500M 2023 6 acquisitions ~$400M ~$300M GWP 12+ ~
Slide 9: Philip Mather, Executive Vice-President & Chief Financial Officer
PHILIP MATHER Executive Vice-President & Chief Financial Officer
Slide 10: Q1-2025 Personal Auto
10 Q1-2025 PERSONAL AUTO ($ in millions, except as otherwise noted) Q1-25 Q1-24 Δ Gross Written Premiums(1) (TTM) ($ in millions) Gross Written Premiums(1) $438.8 $413.5 6.1% $1,893 $1,845 $1,867 Adjusted for exit of Sonnet Alberta Auto 10.2% $1,799 $1,713 $1,657 Net Underwriting Revenue(1) $428.2 $
Slide 11: Q1-2025 Personal Property
11 Q1-2025 PERSONAL PROPERTY ($ in millions, except as otherwise noted) Q1-25 Q1-24 Δ Gross Written Premiums(1) (TTM) ($ in millions) $1,202 Gross Written Premiums(1) $255.0 $236.5 7.8% $1,167 $1,184 $1,146 $1,124 $1,103 $1,113 $1,071 Net Underwriting Revenue(1) $283.2 $260.7 8.6% $1,038 Underwritin
Slide 12: Q1-2025 Commercial Insurance
12 Q1-2025 COMMERCIAL INSURANCE ($ in millions, except as otherwise noted) Q1-25 Q1-24 Δ Gross Written Premiums(1) (TTM) ($ in millions) $1,427 Gross Written Premiums(1) $336.3 $305.6 10.0% $1,360 $1,397 $1,324 $1,277 $1,235 $1,193 Net Underwriting Revenue(1) $290.4 $258.9 12.2% $1,160 $1,114 Underw
Slide 13: Q1-2025 Consolidated Performance
13 Q1-2025 CONSOLIDATED PERFORMANCE ($ in millions, except as otherwise noted) Q1-25 Q1-24 Δ Gross Written Premiums(1) (TTM) ($ in millions) Gross Written Premiums(1) $1,030.1 $955.6 7.8% $4,523 Adjusted for exit of Sonnet Alberta Auto 9.6% $4,448 $4,372 $4,269 $4,114 $4,005 Net Underwriting Revenue
Slide 14: Q1-2025 Consolidated Profitability
14 Q1-2025 CONSOLIDATED PROFITABILITY ($ in millions, except as otherwise noted) Q1-25 Q1-24 Δ Operating Income (1) ($ in millions) Underwriting Income(1,2) $55.0 $54.8 $0.2 $146.2 $147.0 $17.2 $11.4 Net Investment Income(3) $49.8 $48.2 $1.6 $100.3 $100.5 $51.1 $49.9 $10.0 $11.0 Distribution Income(
Slide 15: Q1-2025 Balance Sheet Strength
15 Q1-2025 BALANCE SHEET STRENGTH ($ in millions, except as otherwise noted) Mar 31-24 Dec 31-24 Mar 31-25 Consolidated Book Value q/q Δ Total assets $7,213 $7,693 $7,780 ($ in millions) Investments $4,784 $5,271 $5,448 $16 $76 Total liabilities $4,125 $4,187 $4,197 ($21) Insurance contract liabilit
Slide 16: Q1-2025 Capital Management
16 Q1-2025 CAPITAL MANAGEMENT Capital Management Actions Financial Capacity q/q Δ ($ in millions) $72 $30 • As of May 8, we have committed to four broker transactions $76 $16 totaling ~$130M in 2025, of which three have already closed ($33) ($21) • Proactive measures were taken during the quarter to
Slide 17: Our Strategy
17 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 18: Questions?
9B, QUESTIONS? definity.
Slide 19: Further Advisory Regarding Forward-Looking Information
19 FURTHER ADVISORY REGARDING FORWARD-LOOKING INFORMATION Forward-looking information in this presentation 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 th
Slide 20: Contact Us
20 CONTACT US Investor Relations Corporate Communications Sarah Attwells General Investor Inquiries AVP, Corporate Communication 1-866-902-4724 (TF) 226-753-1130 IR@definity.com sarah.attwells@definity.com General Inquiries Dennis Westfall Definity Financial Corporation VP, Investor Relations 111 We
Slide 21: Definity
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