Definity Financial (DFY) Q4 2025 earnings summary

Executive summary

• Achieved strong growth and profitability in 2025, with gross written premiums up 8.8% to $4.8B and operating EPS of $3.53, a 32.7% increase year-over-year.

• Completed a transformational $3.3B acquisition of Travelers' Canadian P&C operations in January 2026, elevating pro forma annual gross written premiums to $6.3B and securing a top-5 industry position.

• Integration of Travelers is on track, with policy conversion to begin in Q2-2026, full integration targeted by Q4-2028, and at least CAD 100M in annual cost synergies expected over three years.

• Book value per share increased 16% in 2025 to $33.78, supported by strong operating earnings and private placements of common shares.

• Entered 2026 with momentum across all business lines and a clear strategy to become a top three P&C insurer.

Financial highlights

• Full-year operating EPS of CAD 3.53, up nearly 33% year-over-year; Q4 operating EPS of CAD 0.99.

• Full-year GWP reached $4.8B, up 8.8%; Q4 GWP rose 9.2% to $1.2B.

• Combined ratio improved to 89.9% in Q4 2025 and 91.6% for FY25, down 2.9 points year-over-year.

• Book value per share increased 16% year-over-year to $33.78.

• Operating ROE for 2025 was 12.2%, up from 10.6% in 2024.

Outlook and guidance

• 2026 gross written premiums expected to exceed CAD 6.5B, a 35% increase, driven by Travelers acquisition and organic growth.

• Sub-95% combined ratio targeted for 2026, with synergy realization contributing more meaningfully in 2027.

• Broker platform expected to generate operating income 20% higher than 2025's $94.4M.

• Integration of Travelers to be largely complete within 18 months, with full synergy realization by end of three years.

• Management expresses confidence in continued operational and financial strength, as reflected in the increased dividend.