Actuarial Notes

2025 Annual Report

By Definity Financial Corporation · 2026

Definity Financial Corporation's annual report for 2025: letters from the Board Chair and the CEO, the MD&A and the audited consolidated financial statements. Definity describes itself as one of Canada's leading property and casualty insurers, with a multi-line and multi-channel business model; its MD&A, dated February 12, 2026, places it sixth among Canadian P&C insurers. The year's results are set against its acquisition of Travelers' Canadian P&C insurance business, which closed on January 2, 2026, adding about $1.5 billion of pro forma gross written premiums.

About Definity

  • Purpose, ambition and promise; the broker brands, the National Broker Platform and the direct brands

Our Strategic Objectives

Our Key Focus Areas

Building a Canadian Champion

  • The agreement of May 27, 2025 to acquire Travelers' Canadian personal insurance business and most of its commercial insurance business

Clear Path to Expense Synergies

2025 Financial Highlights

Letter from the Board Chair

Letter from the CEO

Balance Sheet Strength & Capital Management

Growing Digital & AI Advantage

A Purpose-Driven Sustainability Leader

Empowering Top Talent with an Inclusive Culture

Management’s Discussion and Analysis

  • Introduction
  • 1 Corporate Overview and Strategy
  • 2 Acquisition of Travelers’ Canadian P&C Insurance Business
  • 3 Financial Performance
    • 2025 combined ratio of 91.6% (94.5% in 2024): a claims ratio of 62.0% and an expense ratio of 29.6%
    • The claims ratio is built from a core accident year claims ratio of 60.3%, catastrophe losses of 143.5 million (3.4%) and prior year favourable claims development of 71.1 million (1.7%); the core ratio rose for the year in part because the definition of a single claim catastrophe loss changed
    • Gross written premiums of $4,808.1 million, up 8.1% on 2024
  • 4 Results by Line of Business
  • 5 Operating Environment and Outlook
  • 6 Financial Position
  • 7 Selected Annual Information and Summary of Quarterly Results
  • 8 Liquidity and Capital Resources
  • 9 Related Party Transactions
  • 10 Internal Control over Financial Reporting (ICFR) and Disclosure Controls and Procedures
  • 11 Critical Accounting Judgments, Estimates, and Assumptions
  • 12 Risk Management and Corporate Governance
  • 13 Supplementary Financial Measures and Non-GAAP Financial Measures and Ratios
  • 14 Outstanding Share Data
  • 15 Definitions

Consolidated Financial Statements

  • Report of Management’s Accountability
  • Independent Auditor’s Report
  • Consolidated Balance Sheets
  • Consolidated Statements of Income
  • Consolidated Statements of Comprehensive Income
  • Consolidated Statements of Changes in Equity
  • Consolidated Statements of Cash Flows
  • Notes to the consolidated financial statements
    • 1 Nature of Operations
    • 2 Summary of Material Accounting Policies
    • 3 Standards Issued but Not Yet Effective
    • 4 Material Accounting Judgments, Estimates, and Assumptions
    • 5 Business Combinations
    • 6 Investments
    • 7 Financial Risk Management
    • 8 Insurance and Reinsurance Contracts
    • 9 Insurance Risk Management
    • 10 Property and Equipment
    • 11 Income Taxes
    • 12 Goodwill and Intangible Assets
    • 13 Other Assets
    • 14 Accounts Payable and Other Liabilities
    • 15 Debt Outstanding
    • 16 Non-Controlling Interests
    • 17 Share Capital
    • 18 Capital Management
    • 19 Earnings per Common Share
    • 20 Share-Based Compensation Plans
    • 21 Post-Employment Benefits
    • 22 Rate Regulation
    • 23 Expenses
    • 24 Cash Flows from Operating Activities
    • 25 Commitments and Contingencies
    • 26 Related Party Transactions
    • 27 Operating Segments
    • 28 Risks Related to Economic Uncertainty

Two-year Quarterly Financial History

Five-year Financial History

Corporate Information

Sources