Definity Financial (DFY) Q4 2025 earnings summary

Executive summary

• Completed $3.3B acquisition of Travelers' Canadian business in January 2026, doubling size since IPO and securing a top-5 P&C insurer position.

• Achieved full-year 2025 operating EPS of CAD 3.53, up 32.7% year-over-year, and gross written premiums of $4.8B, up 8.8%.

• Integration of Travelers is on track, with at least CAD 100M in annual cost synergies expected over three years and policy conversion beginning Q2 2026.

• Strong Q4 2025 performance: operating EPS of CAD 0.99, combined ratio of 89.9%, and GWP up 9.2%.

• Focused on disciplined execution, digital innovation, and broker partnerships to drive growth and outperform market cycles.

Financial highlights

• Full-year 2025 GWP up 8.8% to $4.8B; Q4 GWP up 9.2% to $1.2B.

• Combined ratio improved to 91.6% for 2025 and 89.9% in Q4.

• Book value per share increased 16% to $33.78 in 2025.

• Operating ROE reached 12.2% for 2025, up 160 bps year-over-year.

• Quarterly dividend per share increased 72% since IPO and 14.7% year-over-year.

Outlook and guidance

• 2026 gross written premiums expected to exceed CAD 6.5B, at least 35% growth from 2025, driven by Travelers acquisition and organic growth.

• Targeting sub-95% combined ratio and operating ROE in the low teens for 2026.

• Broker platform operating income expected to grow ~20% in 2026 from CAD 94M in 2025.

• Integration of Travelers to deliver at least CAD 100M in annual run-rate synergies, with 2/3 of integration efforts completed in first 18 months.

• Management confident in continued operational and financial strength, reflected in increased dividend.