Definity Financial Corporation reported record earnings for the third quarter of 2025, with operating net income reaching $125.2 million, or $1.03 per share.
The Toronto-based property and casualty insurer’s performance marked a substantial improvement from the $0.13 per share recorded in the same quarter of 2024, which had been affected by significant catastrophe losses.
The company’s combined ratio improved to 89.4% in the third quarter, compared with 103.4% a year earlier, reflecting lower-than-expected catastrophe losses and operational efficiency improvements.
“The third quarter of 2025 set a record for quarterly earnings at Definity,” said Rowan Saunders, president and CEO. “Our strong underwriting performance, underpinned by lower-than-expected levels of catastrophe losses, higher net investment income, and continued momentum in our insurance broker platform, combined to produce operating net income of $125.2 million, or $1.03 per share.”
Gross written premiums increased 7.5% to $1.228 billion in the quarter, driven by rate actions in personal auto, firm market conditions in personal property, and strong execution in commercial insurance. Year-to-date gross written premiums reached $3.596 billion, up 7.7% from 2024.
The company’s trailing 12-month operating return on equity improved to 12.5%, while book value per share rose 24% to $33.43 compared with a year earlier. Shareholders’ equity exceeded $4 billion for the first time, reaching $4.007 billion as of Sept. 30, 2025.
Net income attributable to common shareholders totalled $193.1 million in the quarter, up from $104.8 million in Q3 2024. The increase was driven by higher underwriting income, partially offset by lower gains on bonds.
“We ended the third quarter with shareholders’ equity above $4 billion for the first time, 24% higher on a per share basis than a year prior,” said Philip Mather, executive vice-president and CFO.
Definity completed a $1 billion private placement of senior unsecured notes during the quarter, the final financing required for its planned acquisition of Travelers’ Canadian property and casualty insurance business. The transaction, announced in May for approximately $3.3 billion in cash consideration, is now tracking favourably, with closing targeted in the first half of the first quarter of 2026, pending customary approvals.
The company’s board declared a dividend of $0.1875 per share, payable Dec. 24 to shareholders of record as of Dec. 12.
What are your thoughts on the recent results of Definity Financial? Share your insights in the comments below.
