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DEFINITY RELEASES ESTIMATE OF FINANCIAL IMPACT FROM CATASTROPHE LOSSES FOR THE THIRD QUARTER OF 2024
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
