DEFINITY RELEASES ESTIMATE OF FINANCIAL IMPACT FROM CATASTROPHE LOSSES FOR THE FIRST QUARTER OF 2025
WATERLOO, ON, April 9, 2025 /CNW/ - Definity Financial Corporation (TSX:DFY) today announced that catastrophe losses in the first quarter of 2025 would negatively impact operating income by approximately $50 million net of reinsurance recoveries, or approximately $0.32 per common share, net of taxes and reinsurance. This amount was approximately double our expectation based on first quarter historical averages.
The table below provides a breakdown of the estimated catastrophe losses by line of business during the first quarter of 2025:
(in millions of Canadian dollars - unaudited) | Amount |
Personal auto | $3 |
Personal property | $33 |
Commercial insurance | $14 |
Total | $50 |
This past quarter saw heavy snowfall and rain while the ground was frozen, leading to elevated property damage from roof collapses and water infiltration, mostly in Ontario, Quebec, and Atlantic Canada. Our estimated losses also include those arising from the severe ice storm that impacted Ontario in late March, resulting in downed trees and loss of power for hundreds of thousands of homes and businesses. This assessment is based on information received from customers to date, as well as an analysis of exposures.
"With our enhanced catastrophe response capabilities, the resilience of our business model, and the commitment of our people, we have supported our impacted customers during these challenging winter months in a way that lives up to our promise of making insurance better," said Rowan Saunders, Definity's President and Chief Executive Officer.
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 over $4.4 billion in gross written premiums(1) in 2024 and over $3.3 billion in equity attributable to common shareholders as at December 31, 2024.
1 "Gross written premiums" is a supplementary financial measure composed of the total premiums for sale of insurance during a specified period including premiums assumed. |
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking information within the meaning of applicable securities laws, including, without limitation, statements related to estimated catastrophe losses, including by line of business and on a per common share basis. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely", "potential" or the negative or other variations of these words or other similar or comparable words or phrases, are intended to identify forward-looking statements. This information reflects Definity's current expectations regarding the events noted above, the terms and operation of Definity's reinsurance arrangements, and the anticipated effect of applicable current and future federal and provincial tax legislation. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Definity's control. Such risks and uncertainties are included in the "Cautionary Note Regarding Forward-looking Information" and the "Risk Management and Corporate Governance" sections of Definity's Management's Discussion and Analysis for the year ended December 31, 2024, each of which is available on our web site at www.definityfinancial.com or on SEDAR+ at www.sedarplus.ca. Due to these risks and uncertainties, actual results could differ materially from those projected herein. Unless otherwise indicated, all forward-looking statements in this press release are made as of April 9, 2025 and are subject to change after that date. Definity does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.
NON-GAAP MEASURE
This news release contains a measure of the negative impact on operating income, net of taxes and reinsurance, that does not have any standardized meaning prescribed by generally accepted accounting principles ("GAAP"). This non-GAAP measure may be used by management and financial analysts to assess our performance, but may not be comparable to any similar measures presented by other companies. Accordingly, this measure should not be considered in isolation or as a substitute for analysis of our financial information reported under GAAP.
SOURCE Definity Financial Corporation