Definity in "robust" financial position

Definity in “robust” financial position | Insurance Business Canada

Insurance News

Definity in “robust” financial position

Net income up in both Q4 and full year

Insurance News

By
Terry Gangcuangco

Property and casualty insurer Definity Financial Corporation has released its earnings report for the fourth quarter and full-year 2023.

Here’s how the Canadian provider performed in the periods:

Metric

Q4 2023

Q4 2022 (restated)

FY 2023

FY 2022 (restated)

Gross written premium (GWP)

$1 billion

$951.9 million

$4 billion

$3.7 billion

Combined ratio (COR)

90.6%

92.2%

95.9%

94.2%

Underwriting income

$87 million

$66.7 million

$144.9 million

$189.4 million

Net investment income

$49.4 million

$39.5 million

$179.5 million

$133.1 million

Net income attributable to common shareholders

$225.9 million

$185 million

$350.1 million

$110.9 million

Operating net income

$100.7 million

$76.6 million

$246.5 million

$236.8 million

Commenting on the results, president and chief executive Rowan Saunders said in a release: “I am proud of our company’s delivery of results to shareholders while at the same time having been there for our customers and brokers.

“We continued to leverage our strong broker proposition and digital platforms to drive solid overall premium growth of 9.4%, ending the year with GWP exceeding $4 billion for the first time. Our full-year COR of 95.9% demonstrates the strength of our operating model, which enabled us to deliver on our mid-90s combined ratio target despite 6.2 points of catastrophe losses.

“In the fourth quarter, strong underwriting income combined with robust net investment income and growing contributions from our insurance broker platform resulted in record operating net income of $100.7 million or $0.86 per share. We leveraged our M&A (mergers and acquisitions) expertise in 2023, completing two notable broker acquisitions which enabled us to deploy excess capital in an accretive manner.”

Executive vice president and chief financial officer Philip Mather described Definity as being in a “robust” financial position while citing the company’s “resilient” operations.

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