Overview

* Definity Q3 revenue and adjusted EPS beat analyst expectations

* Company's strong results driven by lower catastrophe losses and higher net investment income

Outlook

* Definity expects to close the Travelers Transaction in the first half of Q1 2026

Result Drivers

* GROSS WRITTEN PREMIUMS - Growth of 7.5% in Q3 2025 due to proactive rate actions in personal auto and firm market conditions in personal property

* COMBINED RATIO IMPROVEMENT - Combined ratio improved to 89.4% due to lower-than-expected catastrophe losses

* NET INVESTMENT INCOME - Increase in net investment income driven by higher bond holdings

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat C$1.18 C$1.11

Revenue bln bln (2

Analysts

)

Q3 Beat C$1.03 C$0.72

Adjusted (9

EPS Analysts

)

Q3 EPS C$1.59

Q3 Net C$193.10

Income mln

Q3 89.40%

Combined

Ratio

Q3 29.20%

Expense

Ratio

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the property & casualty insurance peer group is "buy."

* Wall Street's median 12-month price target for Definity Financial Corp ( DFYFF ) is C$75.00, about 10.2% above its November 5 closing price of C$67.36

* The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)