Definity Financial Corporation (TSX:DFY) today announced that catastrophe losses in the first quarter of 2025 would negatively impact operating income by approximately $50 million net of reinsurance recoveries, or approximately $0.32 per common share, net of taxes and reinsurance. This amount was approximately double our expectation based on first quarter historical averages.

The table below provides a breakdown of the estimated catastrophe losses by line of business during the first quarter of 2025:

This past quarter saw heavy snowfall and rain while the ground was frozen, leading to elevated property damage from roof collapses and water infiltration, mostly in Ontario, Quebec, and Atlantic Canada. Our estimated losses also include those arising from the severe ice storm that impacted Ontario in late March, resulting in downed trees and loss of power for hundreds of thousands of homes and businesses. This assessment is based on information received from customers to date, as well as an analysis of exposures.

"With our enhanced catastrophe response capabilities, the resilience of our business model, and the commitment of our people, we have supported our impacted customers during these challenging winter months in a way that lives up to our promise of making insurance better," said Rowan Saunders, Definity's President and Chief Executive Officer.

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 over $4.4 billion in gross written premiums(1) in 2024 and over $3.3 billion in equity attributable to common shareholders as at December 31, 2024.

FORWARD-LOOKING STATEMENTS

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

SOURCE: Definity Financial Corporation

Investor inquiries: Dennis Westfall, VP, Investor Relations, (C) 416-435-5568,
dennis.westfall@definity.com; Media inquiries: Sarah Attwells, AVP, Corporate
Communication, (C) 226-753-1130, sarah.attwells@definity.com

COMTEX_464391441/2197/2025-04-09T17:01:00