CORRECTED-Canada's Definity Financial Q4 premiums rise

Overview

• Canada insurer's Q4 gross written premiums rose 9.2% yr/yr

• Company completed Travelers Transaction, enhancing market position

Outlook

• Definity expects annual gross written premiums to reach C$6.3 bln post-Travelers acquisition

• Company anticipates strong operational outlook and increased dividends in 2026

Result Drivers

• PREMIUM GROWTH - Gross written premiums increased 9.2% in Q4, driven by growth across all lines of business

• UNDERWRITING INCOME - Strong underwriting income contributed to operating net income of C$120.7 mln in Q4

• INVESTMENT INCOME - Net investment income rose to C$61.1 mln in Q4, driven by increased interest income

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy."

• Wall Street's median 12-month price target for Definity Financial Corp is C$80.00, about 23.3% above its February 11 closing price of C$64.88

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nCNWCtljJa

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