Definity Financial (DFY) Q2 2026 earnings summary

Executive summary

• Achieved 34.7% year-over-year gross written premium growth in Q2 2026, driven by strong retention of acquired business, successful integration of Travelers, and robust operational execution.

• Integration of Travelers Canadian P&C operations is ahead of schedule, with annual pre-tax expense synergy target raised by 25% to CAD 100–125 million, and $52 million in run-rate synergies realized to date.

• Customer and talent retention exceeded expectations, with over 40,000 policies converted and strong broker support.

• Operating EPS rose 15.5% to $0.97, and book value per share increased 11.5% to $35.01.

• Financial capacity exceeds $1.2 billion, supporting organic growth and M&A.

Financial highlights

• Gross written premiums grew 34.7% year-over-year to $1.8 billion in Q2 2026, tracking toward full-year guidance of $6.5 billion.

• Insurance revenue rose 54.3% year-over-year to $1,793.7 million.

• Operating EPS reached $0.97, up 15.5% year-over-year; book value per share increased 11.5% to $35.01.

• Combined ratio was 93.9% in Q2 2026, up 1.0 pt year-over-year.

• Net investment income was $79.5 million, with distribution income at $24.5 million.

Outlook and guidance

• Full-year gross written premium guidance reaffirmed at $6.5 billion, with consistent growth rates expected in the second half.

• Personal auto and property growth expected to remain strong; commercial lines to accelerate to mid-to-upper 30% growth in H2.

• Industry growth forecasted in low to mid-single digits, with firm market conditions in personal and commercial lines.

• Midterm objective remains a sustainable mid-teens operating ROE, with integration expected to add 200+ basis points.

• Approximately one-third of increased synergies to benefit 2026 results, with the remainder over the following 24 months.