Definity Financial Corporation Reports Second Quarter 2026 Results

About this update from Definity Financial Corp.

(TSX: DFY) (in Canadian dollars except as otherwise noted) TORONTO, July 30, 2026 /CNW/ -- Highlights Executive Messages "Our second quarter results demonstrate the continued momentum of our business under our expanded scale. Gross written premium growth of 34.7% in the quarter keeps us firmly on track to achieve our full-year target of $6.5 billion. The integration of the Travelers Transaction continues to progress well. We are particularly pleased with our customer retention as policies began to renew on Definity systems this quarter. This success, combined with our integration momentum and early cost savings, supports increasing our annual expense synergy target by 25%. These results demonstrate the value and resilience of our diversified business model. By focusing on disciplined execution across our portfolios, our teams delivered a strong underwriting performance. Our capital position continues to provide us with financial flexibility to support our organic growth, fund accretive acquisitions, and deliver on our capital priorities. We remain highly confident in our ability to build on this scale to deliver sustainable, long-term value for our shareholders." – Rowan Saunders, President & CEO "Our financial results for the second quarter highlight the enhanced earnings power of our expanded business. We delivered operating earnings of $0.97 per share, representing a 15.5% increase over the prior year, with 11.5% book value per share growth, while our capital position remains robust with more than $1.2 billion of financial capacity. Our earnings quality remains high, driven by underwriting income of $88.3 million, net investment income of $79.5 million, and a 20% increase in broker operating income to $35.7 million, in line with our full-year guidance. We delivered an impressive consolidated combined ratio of 93.9%, inclusive of the results from the acquired business. We have now reached a $52 million synergy run rate, with $11 million earned in the quarter. This rapid pace of realization underpins our confidence in our updated $125 million target, and we expect approximately one-third of these increased synergies to be earned in 2026. Looking ahead, these strong operating results and early progress on synergy capture support our objective to deliver a sustainable, mid-teens operating ROE post integration." – Philip Mather, EVP & CFO Consolidated Results Net Income and Operating Net Income Line of Business Results Personal Insurance Commercial Insurance Financial Position Dividend 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 July 31, 2026. The conference call will be available simultaneously and in its entirety to all interested investors and the news media at www.definity.com . 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 approximately $6.4 billion in gross written premiums (pro forma with the Travelers Transaction) for the 12 months ended June 30, 2026 and $4.2 billion in equity attributable to common shareholders as at June 30, 2026. 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. Estimates and assumptions have been made regarding, among other things, the realization of the expected strategic, financial, and other benefits of the Travelers Transaction, and the implications of the economic, political and geopolitical environments and industry conditions during the integration period. There can be no assurance that the strategic, financial, and other 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: 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 "12 – Risk Management and Corporate Governance" section of the Management's Discussion and Analysis for the year ended December 31, 2025 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 2026 Management's Discussion and Analysis dated July 30, 2026, which is available on our website at www.definity.com  and on SEDAR+ at www.sedarplus.ca . Below are quantitative reconciliations of non-GAAP measures for the three and six months ended June 30, 2026 and 2025: Net underwriting revenue Net claims and adjustment expenses Prior year claims development Net underwriting expenses   Net commissions Net operating expenses Net premium taxes Underwriting income Operating net income, Operating income, Non-operating gains (losses) 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 gains (losses), which are considered non-GAAP financial measures. Distribution income Below are quantitative reconciliations of non-GAAP ratios for the periods ended June 30, 2026 and 2025: ROE Operating ROE View original content to download multimedia: http://www.newswire.ca/en/releases/archive/July2026/30/c6466.html

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