Definity Financial Corporation delivered strong full-year 2025 results, supported by continued premium growth and solid underwriting performance, while setting out ambitious growth targets for 2026 and announcing a board leadership change.
Gross written premiums reached $4.8 billion in 2025, up 8.8% year-over-year on an adjusted basis. The company highlighted steady long-term growth, with premiums rising at an 11.2% compound annual growth rate from $3.3 billion in 2021 to $4.8 billion in 2025.
Underwriting performance strengthened in 2025, with a combined ratio of 91.6%, improving from prior years and well below the 100% threshold, indicating profitable core insurance operations. The company reported an average combined ratio of 93.9% over the past five years.
Operating return on equity rose to 12.2%, while book value per share increased 16% to $33.78. Definity also increased its quarterly dividend to $0.215 per share.
Looking ahead, the company aims to grow gross written premiums by at least 35% to more than $6.5 billion in 2026, while maintaining a combined ratio below 95%. It also expects to generate an operating return on equity in the low double-digit range next year.
Definity also announced the appointment of Daniel Fortin as Chair of the Board, effective May 14, 2026, following its annual meeting. Fortin will succeed John Bowey, who is retiring. Fortin has served on the board since 2014 and brings extensive leadership experience, including more than three decades in the technology sector and prior experience as President of IBM Canada.
“Over many years, John Bowey has demonstrated exceptional engagement and sensitivity to the needs of our stakeholders…,” said Rowan Saunders, President and CEO. “I look forward with confidence to the future with Dan Fortin as the new Board Chair.”
Definity also highlighted its acquisition of Travelers Insurance Company of Canada, a transaction that positions the company among the five largest P&C insurers in Canada, with approximately $6.3 billion in combined gross written premiums in 2025.
The deal expands Definity’s scale and capabilities, adding approximately $500 million in annual commercial premiums and nearly $1 billion in personal lines premiums, while enhancing its underwriting expertise and product offerings.
The transaction is expected to generate approximately $100 million in pre-tax expense synergies and improve operating return on equity by more than 200 basis points post-integration, supporting a path toward mid-teens returns over the medium term.
Definity financed the approximately $3.4 billion transaction through a combination of equity, debt, and excess capital, alongside targeted capital management and hedging strategies.
