Definity Insurance ended 2024 with solid financial results, navigating a challenging year for the Canadian property and casualty insurance sector. Despite industry challenges, including significant losses from severe weather events, the company said it has met or exceeded its financial goals.
For the year, Definity reported operating earnings per share of $2.66, up nearly 25% from 2023. The company achieved top-line growth of 11.1%, a combined ratio of 94.5%, and an operating return on equity (ROE) of 10.6%.
Additionally, book value per share increased by 17.6%, and the company ended the year with financial capacity of approximately $1.7 billion.
Since going public, Definity said it has consistently expanded its footprint in the market. The company grew premiums by $1.2 billion. It has also maintained profitability despite tough market conditions and increased its quarterly dividend by 50%.
Definity said it has deployed $1 billion of capital, with a significant portion to be used to grow its broker platform.
Meanwhile, the company’s digital platform, Sonnet, reported strong performance in the fourth quarter of 2024, and is expected to break even or record a profit this year. The company also invested in scalable platforms, such as Vyne, which is built on Guidewire platform to support future growth.
On the ESG front, the company said it has received an MSCI ESG rating of AAA in 2024. It also became the first Canadian P&C insurer to sign the United Nations Women’s Empowerment Principles, adding that it exceeded its gender diversity targets, with women holding 26% of executive leadership roles and 31% of board positions.
Definity also contributed over $4 million to Canadian causes, including those focused on climate change and supporting marginalized communities.
Looking forward to 2025, Definity aims for continued growth. Its targets include premium growth of 8-10%, a combined ratio of under 95%, and an operating ROE in the range of 10% to low teens.
While challenges such as inflation, climate change, and increased competition remain, the company said it will use its management experience, technology and market expertise to manage the risks effectively.
