Definity Financial (DFY) Investor presentation summary

Strategic highlights

• Positioned as a top 5 Canadian P&C insurer with over 150 years of operations and a diversified product suite across auto, property, commercial, pet, and specialty lines.

• Strong focus on digital innovation, leveraging award-winning platforms like Sonnet and Vyne to enhance customer and broker experiences and drive operational efficiency.

• Advanced analytics and AI capabilities underpin pricing, underwriting, claims management, and customer engagement, supporting profitable growth.

• Significant expansion in commercial insurance, now the 4th largest commercial player in Canada with a 7% share of the target addressable market.

• Clear strategic objectives to become one of the three largest Canadian P&C insurers, emphasizing digital leadership, disciplined financial management, and sustainability.

Financial performance and targets

• Gross written premiums reached $6.4B TTM Q2-2026, with a target to grow by 35% over 2025 to $6.5B.

• Combined ratio consistently below 95%, with a 93.9% average and a target to maintain sub-95% in 2026.

• Operating ROE targeted in the range of 10% to below teens for 2026, with sustainable mid-teens OROE as a long-term objective.

• Net income attributable to common shareholders was $152.4M in Q2 2026, with strong growth in operating income and underwriting results.

• Dividend per share increased by 72% since IPO, reflecting robust capital management and financial flexibility.

Integration and synergy realization

• Successful integration of Travelers’ Canadian P&C operations, with 40,000 policies converted and retention rates in line with expectations.

• Run-rate expense synergies from the acquisition are now expected to reach $125M (pre-tax) within 36 months, up 25% from the original target.

• $52M in run-rate synergies realized as of Q2-2026, with $11M benefitting underwriting results in the quarter.

• Integration costs to date total $73M, with total expected costs of $150M-$170M.