Definity Financial Corporation Reports Fourth Quarter and Full Year 2025 Results

TORONTO, Feb. 12, 2026 /CNW/ – (TSX:DFY)
(in Canadian dollars except as otherwise noted)

Highlights

• Gross written premium¹ growth of 9.2% in Q4 2025, full year growth of 8.8% adjusted for our exited line, was the result of balanced, solid growth in all three lines of business
• Combined ratio¹ of 89.9% in Q4 2025 reflected strong performance across our portfolio; full year combined ratio robust at 91.6% as both personal property and commercial insurance delivered sub-90 combined ratios
• Operating net income¹ of $120.7 million in Q4 2025, compared to $110.4 million in Q4 2024, resulting in operating EPS¹ of $0.99. Operating ROE¹ was 12.2% over the last twelve months
• Book value per share¹ of $33.78 was up 16.0% from a year ago, reflecting strong operating earnings and our private placements of common shares in Q2 2025
• Quarterly dividend increased for the fourth consecutive year, by 14.7% to $0.215 per share, supported by confidence in our operational outlook and our strong financial position
• Definity closed its transformational Travelers Transaction² on January 2, 2026, enhancing our pro forma gross written premiums by approximately $1.5 billion and delivering on our top-5 strategic aspiration

Executive Messages

“2025 was a transformational year for Definity, as we delivered strong financial results, while announcing a milestone acquisition. We again met or exceeded all financial targets for the year, with top line growth of 8.8% adjusted for our exited line, a robust full year combined ratio of 91.6%, and an operating ROE of 12.2%. Since completing our landmark IPO four years ago, we have grown premiums by $1.6 billion, delivered consistent underwriting profits, built the 10th largest property and casualty insurance brokerage in Canada, grown book value per share by more than 63%, and increased our quarterly dividends per share by 72%. The additional premiums from our recently closed Travelers Transaction bring us to a pro forma $6.3 billion in combined annual gross written premiums, which represents a top-5 position in the industry. As we welcome our new colleagues, we begin a new era for Definity, one that is grounded in our ambition to build a Canadian champion and to continue delivering on our commitment to help our customers and communities adapt and thrive.”
– Rowan Saunders, President & CEO

“In the fourth quarter, strong underwriting income together with meaningful contributions from our insurance brokerage platform and net investment income combined to generate operating net income of $120.7 million. This operating performance coupled with our private placements of common shares in the second quarter of 2025 supported a 16.0% increase in book value per share in 2025. We enter 2026 with top and bottom-line momentum in all three lines of business, which is an ideal foundation from which to begin the integration of our recently closed $3.3 billion acquisition. The approximately 15% increase in our quarterly dividend, which extends our track record of consistent dividend growth, demonstrates our confidence in our operational outlook and strong capital position.”
– Philip Mather, EVP & CFO

Consolidated Results 

• Gross written premiums (“GWP”) for Q4 2025 increased by $102.6 million or 9.2% compared to Q4 2024, with growth across all our lines of business. Personal lines GWP were up 10.4%, driven by unit growth and rate increases. Commercial lines GWP increased 6.9%, driven by strong retention and ongoing rate achievement, and continued expansion in small business and specialty. For the year, GWP increased by $360.0 million or 8.1% compared to 2024. Personal lines GWP increased 7.9% and commercial lines GWP increased 8.6%.
• Underwriting income for Q4 2025 was $111.5 million and the combined ratio was 89.9%, compared to underwriting income of $97.0 million and a combined ratio of 90.3% in Q4 2024. The improvement in the combined ratio in Q4 2025 was driven by a decrease in the expense ratio. For the year, our underwriting income increased by $142.3 million and led to a combined ratio of 91.6%, compared to 94.5% in 2024, driven by robust performances in personal property and commercial insurance.
• Net investment income was $61.1 million in Q4 2025 and $215.7 million for the year, compared to $51.1 million in Q4 2024 and $198.2 million in 2024. The increase was due to an increase in interest income driven by the proceeds of our private placement of senior unsecured notes which were invested in short-term investments, and higher holdings of bonds.
• Distribution income was $10.9 million in Q4 2025 and $62.0 million for the year, compared to $11.4 million in Q4 2024 and $54.4 million in 2024. The decrease in Q4 2025 was driven primarily by an increase in Definity’s proportion of business written through our majority-owned brokers. When combining distribution income and the impact of the commission offset, broker operating income increased by $3.2 million in Q4 2025 (17.8% increase) and $18.3 million for the year (24.0% increase), as the business grew as a result of both acquisitions and solid underlying organic growth.

Net Income and Operating Net Income

• Net income attributable to common shareholders was $58.0 million in Q4 2025 compared to $116.6 million in Q4 2024. The decrease was driven by $74 million in pre-tax expenses in connection with the Travelers Transaction, including the impact of CAD/USD currency movements on the foreign exchange forward contract entered into to hedge the purchase price of the Travelers Transaction and integration expenses, and interest expense on the private placement of senior unsecured notes. These were partially offset by higher underwriting income and net investment income. For the year, net income attributable to common shareholders was $418.2 million compared to $430.4 million in 2024.
• Operating net income was $120.7 million in Q4 2025 compared to $110.4 million in Q4 2024, driven by an increase in underwriting income and net investment income, partially offset by interest expense on the private placement of senior unsecured notes. For the year, operating net income was $420.7 million compared to $310.2 million in 2024, driven by the same factors that impacted the fourth quarter.
• Operating ROE was 12.2% in 2025 compared to 10.6% in 2024. The increase in operating ROE was driven by an increase in operating net income, partially offset by the significant growth in equity in the year.

Line of Business Results

Personal Insurance

• Personal lines GWP increased 10.4% in Q4 2025 (7.9% for the year) with strong growth in our broker channel. Direct channel GWP decreased by 1.9% in Q4 2025 (0.3% decrease for the year, excluding Sonnet …

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