WATERLOO, ON, Oct. 10,
2024 /CNW/ - Definity Financial
Corporation (TSX: DFY) today announced that catastrophe losses
in the third quarter of 2024 would negatively impact operating
income by approximately $170 million
net of reinsurance recoveries, or approximately $1.09 per common share, net of taxes and
reinsurance.
The table below provides a breakdown of the estimated
catastrophe losses by line of business during the third quarter of
2024:
|
(in millions of
Canadian dollars - unaudited)
|
Amount
|
|
Personal
auto
|
$17
|
|
Personal
property
|
$128
|
|
Commercial
insurance
|
$25
|
|
Total
|
$170
|
Notable events in the quarter included a significant hailstorm
in Alberta, severe rainstorms that
led to flooding in Ontario and
Quebec, and the Jasper wildfire.
As a result of these events, we have fully utilized our catastrophe
aggregate reinsurance treaty limit for 2024.
This assessment is based on information received from customers
to date, as well as an analysis of exposures. In addition to the
above, we incurred $4 million of
Sonnet Alberta auto catastrophe losses which will be reported
within exited lines.
"Wildfires, flooding, and storms across Canada have been devastating this year, but in
times like these, our commitment to helping clients and communities
thrive is more critical than ever," said Rowan Saunders, Definity's President and Chief
Executive Officer. "With our enhanced catastrophe response
capabilities, we continue to deliver outstanding support to our
impacted customers as they rebuild and recover."
This announcement is further to Definity's August 26, 2024 announcement of its preliminary
estimate of the financial impact arising from catastrophe losses in
July and August 2024.
ABOUT DEFINITY FINANCIAL CORPORATION
Definity Financial Corporation ("Definity", which includes its
subsidiaries where the context so requires) is one of the leading
property and casualty insurers in Canada, with approximately $4.3 billion in gross written
premiums(1) for the 12 months ended June 30, 2024 and over $3.0 billion in equity attributable to common
shareholders as at June 30, 2024.
1 "Gross written premiums"
is a supplementary financial measure composed of the total premiums
for sale of insurance during a specified period including premiums
assumed.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking information within
the meaning of applicable securities laws, including, without
limitation, statements related to estimated catastrophe losses,
including on a per common share basis. The words "may", "will",
"would", "should", "could", "expects", "plans", "intends",
"trends", "indications", "anticipates", "believes", "estimates",
"predicts", "likely", "potential" or the negative or other
variations of these words or other similar or comparable words or
phrases, are intended to identify forward-looking statements. This
information reflects Definity's current expectations regarding the
events noted above, the terms and operation of Definity's
reinsurance arrangements, and the anticipated effect of applicable
current and future federal and provincial tax legislation.
Forward-looking information is based on a number of assumptions and
is subject to a number of risks and uncertainties, many of which
are beyond Definity's control. Such risks and uncertainties are
included in the "Cautionary Note Regarding Forward-looking
Information" section of the Company's Q2-2024 Management's
Discussion and Analysis dated August 1,
2024 and the "Risk Management and Corporate Governance"
section of Definity's Management's Discussion and Analysis for the
year ended December 31, 2023, each of
which is available on our web site at www.definityfinancial.com or
on SEDAR+ at www.sedarplus.ca. Due to these risks and
uncertainties, actual results could differ materially from those
projected herein. Unless otherwise indicated, all forward-looking
statements in this press release are made as of October 10, 2024 and are subject to change after
that date. Definity does not undertake any obligation to update
such forward-looking information, whether as a result of new
information, future events or otherwise, except as expressly
required under applicable securities laws.
NON-GAAP MEASURE
This news release contains a measure of the negative impact on
operating income, net of taxes and reinsurance, that does not have
any standardized meaning prescribed by generally accepted
accounting principles ("GAAP"). This non-GAAP measure may be used
by management and financial analysts to assess our performance, but
may not be comparable to any similar measures presented by other
companies. Accordingly, this measure should not be considered in
isolation or as a substitute for analysis of our financial
information reported under GAAP.
SOURCE Definity Financial Corporation
