Definity improves key metrics in quarterly results

Definity improves key metrics in quarterly results | Insurance Business Canada

Insurance News

Definity improves key metrics in quarterly results

CEO says firm in “excellent position” at the year’s mid-point

Insurance News

By
Terry Gangcuangco

Definity Financial Corporation has reasons to be merry this financial results season, having improved the key metrics in its latest set of interim financials.

Here’s how the Canadian property & casualty insurer performed in the second quarter of 2024:

Metric

Q2 2024

Q2 2023

Gross written premium

$1.24 billion

$1.09 billion

Combined ratio

90.1%

95.3%

Underwriting income

$93.7 million

$41.2 million

Net investment income

$49.9 million

$42.8 million

Net income attributable to common shareholders

$103.8 million

$71.6 million

Operating net income

$109.1 million

$65.1 million

Commenting on the positive numbers, Definity president and chief executive Rowan Saunders (pictured) said: “Our second quarter performance was well ahead of our key financial targets from both top- and bottom-line perspectives. Premiums increased to nearly $1.25 billion while our combined ratio of 90.1% benefitted from strong performance across the business, as well as favourable weather conditions.

“This resulted in a substantial underwriting income of $93.7 million which combined with healthy levels of net investment income and distribution income to generate operating earnings of $0.94 per share – significantly higher than a year ago. At the mid-point of the year, we are in an excellent position to continue building on our profitable growth momentum.”

Meanwhile, executive vice president and chief financial officer Philip Mather called the results “robust,” highlighting the 10.8% operating return on equity for the 12-month period ended June 30.

“Of note, the seasonally strong second quarter contribution from our broker distribution platform completes the first half of 2024 on track to deliver on our full-year expectations for this business,” Mather pointed out.

“Our performance also contributed to strong book value per share growth of 11.7% from a year ago. With financial capacity approaching $1.4 billion, we remain confident in our ability to advance our strategic objectives while delivering on our financial targets.”

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