WATERLOO, ON, Sept. 3, 2026 /CNW/ -- Definity Financial Corporation (TSX: DFY) today released its estimate of the financial impact to Definity arising from catastrophe losses in July and August 2026.1 Notable events in July included severe rainstorms that led to flooding in Ontario and Alberta, while August experienced flooding in Ontario and wildfires in British Columbia.
"While these events have had a meaningful impact, they also demonstrate the importance of being prepared to support customers when they need us most," said Rowan Saunders, President and CEO, Definity. "Thanks to the strength of our business, our investments in catastrophe readiness, and the dedication of our people, we have been there for customers throughout these events while continuing to deliver on our promise of making insurance better."
Definity estimates a negative impact on underwriting income for July and August of approximately $130 million net of reinsurance recoveries, representing $0.79 per common share net of taxes and reinsurance.
This assessment is based on information received to date from customers, as well as analysis of exposures. The summer catastrophe season remains active and additional events may occur. Although year-to-date catastrophe losses are largely in-line with our expectations, our Q3 2026 distinct catastrophe losses so far are trending meaningfully above the full-quarter market consensus expectation of $93 million. We will provide a finalized update for the full quarter during the first half of October.
About Definity Financial Corporation
Definity Financial Corporation ("Definity", which includes its subsidiaries where the context so requires) is one of the leading property and casualty insurers in Canada, with approximately $6.4 billion in gross written premiums (pro forma with the Travelers Transaction2) for the 12 months ended June 30, 2026 and $4.2 billion in equity attributable to common shareholders as at June 30, 2026.
Forward-Looking Statements
This news release contains forward-looking information within the meaning of applicable securities laws, including, without limitation, statements related to estimated catastrophe losses, including on a per common share basis. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely", "potential" or the negative or other variations of these words or other similar or comparable words or phrases, are intended to identify forward-looking statements. This information reflects Definity's current expectations regarding the events noted above, the terms and operation of Definity's reinsurance arrangements, and the anticipated effect of applicable current and future federal and provincial tax legislation. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Definity's control, including the fact that the catastrophe season remains active. Such risks and uncertainties are included in the "Cautionary Note Regarding Forward-looking Information" section of the Company's Q2-2026 Management's Discussion and Analysis dated July 30, 2026 and the "Risk Management and Corporate Governance" section of Definity's Management's Discussion and Analysis for the year ended December 31, 2025, each of which is available on our web site at www.definityfinancial.com or on SEDAR+ at www.sedarplus.ca. Due to these risks and uncertainties, actual results could differ materially from those projected herein. Unless otherwise indicated, all forward-looking statements in this press release are made as of the date it is issued and are subject to change after that date. Definity does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.
Non-GAAP Measure
This news release contains a measure of the negative impact on underwriting income net of reinsurance recoveries which does not have any standardized meaning prescribed by generally accepted accounting principles ("GAAP"). This non-GAAP measure may be used by management and financial analysts to assess our performance, but may not be comparable to any similar measures presented by other companies. Accordingly, this measure should not be considered in isolation or as a substitute for analysis of our financial information reported under GAAP.
1We consider losses to be catastrophe losses if they are the result of either i) an event causing gross losses in excess of $2 million, and generally greater than 100 claims, or ii) a single claim with a gross loss in excess of $5 million. |
2Please refer to the Company's May 27, 2025 news release announcing its agreement with St. Paul Fire and Marine Insurance Company and Travelers Casualty and Surety Company (collectively, "Travelers") to acquire Travelers' Canadian P&C insurance operations, excluding its Canadian surety business and certain select business lines retained by Travelers, for cash consideration of approximately $3.3 billion (the "Travelers Transaction"). |
SOURCE Definity Financial Corporation
Investor inquiries: Dennis Westfall, VP, Investor Relations, (C) 416-435-5568, [email protected]; Media inquiries: Sarah Attwells, AVP, Corporate Communication, (C) 226-753-1130, [email protected]
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