Definity Q3 EPS beat estimates on higher net investment income

Definity Financial

06/11/2025 22:17

Overview

Definity Q3 revenue and adjusted EPS beat analyst expectations

Company's strong results driven by lower catastrophe losses and higher net investment income

Outlook

Definity expects to close the Travelers Transaction in the first half of Q1 2026

Result Drivers

GROSS WRITTEN PREMIUMS - Growth of 7.5% in Q3 2025 due to proactive rate actions in personal auto and firm market conditions in personal property

COMBINED RATIO IMPROVEMENT - Combined ratio improved to 89.4% due to lower-than-expected catastrophe losses

NET INVESTMENT INCOME - Increase in net investment income driven by higher bond holdings

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
C$1.18 bln
C$1.11 bln (2 Analysts)
Q3 Adjusted EPS
Beat
C$1.03
C$0.72 (9 Analysts)
Q3 EPS
C$1.59
Q3 Net Income
C$193.10 mln
Q3 Combined Ratio
89.40%
Q3 Expense Ratio
29.20%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 8 "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$75.00, about 10.2% above its November 5 closing price of C$67.36

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nCNWjxTH6a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)