DEFINITY FINANCIAL CORPORATION EXPECTS TO CLOSE PREVIOUSLY ANNOUNCED TRAVELERS TRANSACTION ON JANUARY 2, 2026

WATERLOO, ON, Dec. 15, 2025 /CNW/ - Definity Financial Corporation (TSX: DFY) today announced that it has received all required regulatory approvals, including from the Minister of Finance (Canada), to complete the acquisition of the personal insurance business and the majority of the commercial insurance business (excluding the surety business) of the Canadian operations of The Travelers Companies, Inc. (the "Transaction") and expects to close the Transaction on January 2, 2026.

"Definity is pleased to be proceeding with momentum through this transformational acquisition as we continue building a Canadian champion," said Rowan Saunders, President & CEO, Definity. "The acquisition will enable us to achieve our objective to become one of the five largest P&C insurers in the country, while strengthening our business mix, expanding our product breadth, and giving us access to exceptional talent. It is financially compelling, with attractive economics, enabling Definity to sustainably target a mid-teens Operating ROE post integration."

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 over $4.7 billion in gross written premiums for the 12 months ended September 30, 2025 and over $4.0 billion in equity attributable to common shareholders as at September 30, 2025.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

This news release contains "forward-looking information" within the meaning of applicable securities laws in Canada. Forward-looking information may relate to our future business, financial outlook and anticipated events or results and may include information regarding our financial position, business strategy, growth strategies, operations, financial results, plans and objectives. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "aims", "targets", "expects" or "does not expect", "is expected", "scheduled", "estimates", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "does not anticipate", "optimize", "strengthening", "leadership", "believes", or variations of such words and phrases or statements that certain actions, events or results "can", "may", "could", "delivers", "would", "might", "will", "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Specifically, forward-looking information in this news release includes, among other things, statements in respect of: our financial performance, including operating return on equity; the anticipated timing of the closing of the Transaction; the characteristics of our business after the completion of the Transaction; certain strategic benefits and opportunities expected to result from the Transaction; the timing for expected synergies resulting from the Transaction to be realized; and projected financial measures following the closing of the Transaction. Statements containing forward-looking information are not historical facts, but instead represent management's expectations, estimates and projections regarding possible future events or circumstances.

Our assessment of, and targets for operating return on equity constitute forward-looking information. See Section 2 - "Acquisition of Travelers' Canadian P&C Insurance Business" in our Management's Discussion and Analysis ("MD&A") for the third quarter ended September 30, 2025 ("Q3 2025 MD&A") for additional information concerning our strategies, assumptions and outlook in relation to those assessments.

Forward-looking information in this news release is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. In addition to other estimates and assumptions which may be identified herein, estimates and assumptions have been made regarding, among other things: that the Transaction will be effected as currently proposed; that the expected benefits of the Transaction will be realized; and that the applicable economic and political environments and current industry conditions will generally continue. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that we considered appropriate and reasonable as at the date such statements are made, and are subject to many factors that could cause our actual results, performance or achievements, or other future events or developments, to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors referenced in the "Cautionary Note Regarding Forward-Looking Information" of our Q3 2025 MD&A.

If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. The opinions, estimates or assumptions referred to above and described in greater detail in Section 11 – "Risk Management and Corporate Governance" of our MD&A for the year ended December 31, 2024 should be considered carefully by readers. To the extent any forward-looking information in this presentation constitutes a "financial outlook" within the meaning of applicable securities laws, such information is being provided to assist investors in understanding the potential financial impact of the Transaction. Such information may not be appropriate for other purposes. 

Although we have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors not currently known to us or that we currently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information, which speaks only as at the date made. The forward-looking information contained in this news release represents our expectations as at the date of this news release and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws in Canada.

All of the forward-looking information contained in this news release is expressly qualified by the foregoing cautionary statements.

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]