TORONTO, Ontario — February 12, 2026 — Leads & Copy — Definity Financial Corporation (TSX: DFY) reported strong financial results for 2025, highlighted by gross written premium growth and the completion of the Travelers Transaction.
The company’s gross written premiums increased by 9.2% in Q4 2025. For the full year, growth reached 8.8% when adjusted for an exited line of business. This growth was attributed to balanced performance across all three lines of business.
Definity’s combined ratio was 89.9% in Q4 2025, reflecting strong performance across its portfolio. The full-year combined ratio was a robust 91.6%, with both personal property and commercial insurance delivering sub-90 combined ratios.
Operating net income for Q4 2025 was $120.7 million, compared to $110.4 million in Q4 2024, resulting in operating earnings per share (EPS) of $0.99. The operating return on equity (ROE) was 12.2% over the last twelve months.
Book value per share was $33.78, up 16.0% from the previous year. This increase reflects strong operating earnings and private placements of common shares in Q2 2025.
The quarterly dividend was increased for the fourth consecutive year, rising by 14.7% to $0.215 per share. This increase is supported by confidence in the company’s operational outlook and strong financial position.
Definity closed its Travelers Transaction on January 2, 2026, which is expected to enhance its pro forma gross written premiums by approximately $1.5 billion. This transaction aligns with the company’s aspiration to be a top-5 player in the industry.
President & CEO Rowan Saunders noted that 2025 was a transformational year for Definity, marked by strong financial results and the milestone acquisition. Saunders stated that the company met or exceeded all financial targets for the year, including top-line growth, a robust combined ratio, and a strong operating ROE.
EVP & CFO Philip Mather highlighted the strong underwriting income and contributions from the insurance brokerage platform and net investment income. Mather also noted that the increase in the quarterly dividend demonstrates confidence in the company’s operational outlook and capital position.
Gross written premiums for Q4 2025 increased by $102.6 million, or 9.2%, compared to Q4 2024, with growth across all lines of business. Personal lines gross written premiums were up 10.4%, driven by unit growth and rate increases. Commercial lines gross written premiums increased 6.9%, driven by strong retention and ongoing rate achievement, as well as continued expansion in small business and specialty areas.
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 was attributed to a decrease in the expense ratio.
Net investment income was $61.1 million in Q4 2025 and $215.7 million for the year, compared to $51.1 million and $198.2 million in the equivalent periods of 2024. The increase was due to an increase in interest income driven by the proceeds of a private placement of senior unsecured notes 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 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 their majority-owned brokers.
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 related to the Travelers Transaction. 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.
On February 12, 2026, the Board of Directors declared a $0.215 per share dividend, payable on March 23, 2026, to shareholders of record as of March 11, 2026, representing a 14.7% increase from the prior year.
On January 2, 2026, Definity successfully completed the Travelers Transaction, solidifying its position as one of the five largest P&C insurers in Canada, with approximately $6.3 billion in combined annual gross written premiums in 2025.
Definity Financial Corporation will host a conference call on February 13, 2026, at 11:00 a.m. ET to review the information included in the news release.
Definity Financial Corporation is a leading property and casualty insurer in Canada, with over $4.8 billion ($6.3 billion pro forma Travelers Transaction) in gross written premiums in 2025 and over $4.0 billion in equity attributable to common shareholders as at December 31, 2025.
Source: Definity Financial Corporation
