Canada's Definity Financial Q4 premiums rise

Definity Financial

12/02/2026 22:13

Corrects metric labels in KD table to show the figures correspond to Q4 Operating Net Income (not Q4 Net Income) and LTM Operating ROE (not Q4 ROE

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

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
C$1.22 bln
C$1.16 bln (1 Analyst)
Q4 EPS
C$0.48
Q4 Operating Net Income
C$120.7 mln
Q4 Combined Ratio
89.9%
Q4 Expense Ratio
29.3%
LTM Operating ROE
12.2%


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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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)