Definity Financial (DFY) 23rd Annual CIBC Eastern Institutional Investor Conference summary

Review of financial objectives and ROE strategy

• Achieved and exceeded initial IPO financial objectives, with an 18% CAGR in share price over three years.

• New ROE objectives focus on sustainable improvement through business mix, digital investments, and claims transformation.

• Key levers: Sonnet digital platform reaching break-even, reducing expense ratio, and claims process modernization.

• Confident in achieving targeted ROE through the cycle, even with volatility from natural catastrophes.

Personal auto and property business outlook

• Personal auto growth is managed for optimal returns, with a target combined ratio around 95%.

• Rate increases in auto are expected to continue at upper single digits through 2025–2026.

• Digital direct (Sonnet) is expected to become accretive as scale increases and expense ratio declines.

• Personal property faces increased climate-related losses, but remains profitable through pricing and portfolio management.

Commercial business performance and growth

• Commercial segment expanded from SME focus to broader mid-market and specialty lines, increasing addressable market.

• Achieved double-digit premium growth and low nineties/high eighties combined ratios.

• Growth driven by technology-enabled broker platforms and strategic relationships.

• Future growth expected in lower teens as market competition increases.