(in Canadian dollars except as otherwise noted)

Highlights

Executive Messages

"The third quarter of 2025 set a record for quarterly earnings at Definity. 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. This result was substantially higher than the catastrophe loss-impacted $0.13 per share in Q3 2024. From a top-line perspective, we again delivered growth in line with our expectations, as gross written premiums increased 7.5% in the quarter to exceed $4.7 billion over the last 12 months. Overall, the company is performing strongly and is in a great position to begin the process of integrating Travelers' Canadian P&C insurance business early next year."

â?? Rowan Saunders, President & CEO

"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, inclusive of strong financial results as well as our private placements of common shares to fund part of the Travelers Transaction. Operating results in the quarter included $54.1 million of net investment income, and $18.2 million of distribution income reflecting strong performance from our broker distribution platform. These results combined with robust underwriting income to generate an operating return on equity of 12.5% over the past 12 months. We successfully completed a $1 billion private placement of senior unsecured notes during the quarter, our inaugural offering and the final piece required to fund our upcoming acquisition. We are in excellent shape both financially and operationally as we look ahead toward a targeted closing in the first half of Q1 2026."

â?? Philip Mather, EVP & CFO

Consolidated Results

 

Net Income and Operating Net Income

Line of Business Results

Personal Insurance

Commercial Insurance

Financial Position

Dividend

Travelers Transaction

Conference Call

Definity will host a conference call to review information included in this news release and related matters at 11:00 a.m. ET on November 7, 2025. The conference call will be available simultaneously and in its entirety to all interested investors and the news media at www.definity.com. A transcript will be made available on Definity's website within two business days.

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 $4.7 billion in gross written premiums for the 12 months ended September 30, 2025 and over $4.0 billion in equity attributable to common shareholders as at September 30, 2025.

Cautionary Note Regarding Forward-Looking Information

This news release contains "forward-looking information" within the meaning of applicable securities laws in Canada. Forward-looking information may relate to our future business, financial outlook and anticipated events or results and may include information regarding our financial position, business strategy, growth strategies, addressable markets, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "aims", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "budget", "scheduled", "estimates", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "does not anticipate", "believes", or variations of such words and phrases or statements that certain actions, events or results "can", "may", "could", "would", "might", "will", "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts, but instead represent management's expectations, estimates and projections regarding possible future events or circumstances. This news release contains forward-looking statements with respect to the Travelers Transaction and its completion.

Estimates and assumptions have been made regarding, among other things, the receipt of all requisite approvals relating to the Travelers Transaction in a timely manner and on terms acceptable to the Company, the realization of the expected strategic, financial, and other benefits of the Travelers Transaction, and the implications of the economic and political environments and industry conditions at close and during the integration period. The completion of the Travelers Transaction is subject to customary closing conditions, termination rights, and other risks and uncertainties, including, without limitation, regulatory approvals, and there can be no assurance that the Travelers Transaction will be completed. There can also be no assurance that if the Travelers Transaction is completed, the strategic and financial benefits expected to result from the Travelers Transaction will be realized.

Forward-looking information in this news release is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that we considered appropriate and reasonable as at the date such statements are made, and are subject to many factors that could cause our actual results, performance or achievements, or other future events or developments, to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors:

If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results might vary materially from those anticipated in the forward-looking information. The opinions, estimates or assumptions referred to above and described in greater detail in the "11 â?? Risk Management and Corporate Governance" section of the Management's Discussion and Analysis for the year ended December 31, 2024 should be considered carefully by readers.

Although we have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, the factors above are not intended to represent a complete list and there may be other factors not currently known to us or that we currently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such forward-looking information will prove to be accurate, as actual results could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information, which speaks only as at the date made. The forward-looking information contained in this news release represents our expectations as at the date of this news release (or as at the date they are otherwise stated to be made) and are subject to change after such date. However, we disclaim any intention, obligation, or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws in Canada.

All of the forward-looking information contained in this news release is expressly qualified by the foregoing cautionary statements.

Supplementary Financial Measures and Non-GAAP Financial Measures and Ratios

We measure and evaluate performance of our business using a number of financial measures. Among these measures are the "supplementary financial measures", "non-GAAP financial measures", and "non-GAAP ratios" (as such terms are defined under Canadian Securities Administrators' National Instrument 52-112 â?? Non-GAAP and Other Financial Measures Disclosure), and in each case are not standardized financial measures under GAAP. The supplementary financial measures, non-GAAP financial measures, and non-GAAP ratios in this news release may not be comparable to similar measures presented by other companies. These measures should not be considered in isolation or as a substitute for analysis of our financial information reported under GAAP. These measures are used by financial analysts and others in the P&C insurance industry and facilitate management's comparisons to our historical operating results in assessing our results and strategic and operational decision-making. For more information about these supplementary financial measures, non-GAAP financial measures, and non-GAAP ratios, including (where applicable) definitions and explanations of how these measures provide useful information, refer to Section 12 â?? Supplementary financial measures and non-GAAP financial measures and ratios in the Q3 2025 Management's Discussion and Analysis dated November 6, 2025, which is available on our website at www.definity.com and on SEDAR+ at www.sedarplus.ca.

Below are quantitative reconciliations of non-GAAP measures for the three and nine months ended September 30, 2025 and 2024:

Net underwriting revenue

Net claims and adjustment expenses

Prior year claims development

Net underwriting expenses

Net commissions

Net operating expenses

Net premium taxes

Underwriting income (loss)

Operating net income, Operating income, Non-operating gains

Net income attributable to common shareholders is the most directly comparable GAAP financial measure disclosed in our interim consolidated financial statements to operating net income, operating income, and non-operating gains, which are considered non-GAAP financial measures.

Distribution income

Below are quantitative reconciliations of non-GAAP ratios for the periods ended September 30, 2025 and 2024:

ROE

Operating ROE

SOURCE Definity Financial Corporation

SOURCE: Definity Financial Corporation

Contacts: 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

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