Definity Financial Corporation has revised its guidance for the first quarter of 2025, forecasting that catastrophe losses will have a significant impact on its operating income.
The company estimates that losses will total approximately $50 million, net of reinsurance recoveries, or about $0.32 per common share, after taxes and reinsurance. This figure is roughly double the company’s initial expectations, based on historical first-quarter averages.
The losses stem from a series of extreme weather events during the quarter, including heavy snowfall, rain, and an ice storm, which caused widespread property damage in Ontario, Quebec, and Atlantic Canada. These conditions led to incidents such as roof collapses and water infiltration.
The ice storm in late March also contributed to the damage, causing power outages and affecting thousands of homes and businesses. Definity’s loss estimates are based on information provided by customers to date, as well as an analysis of exposures.
Despite these significant catastrophe-related losses, Definity’s overall financial outlook for 2025 remains resilient. The company has emphasized its strong catastrophe response capabilities and the robustness of its business model in managing such events.
Rowan Saunders, president and CEO of Definity, noted the company’s continued focus on its long-term growth strategy and its ability to support customers during challenging weather events. While the financial impact of these weather-related incidents is substantial, Definity’s broader performance remains stable.
Definity reported a solid year of growth in 2024. Gross written premiums (GWP) for the year rose by 11.1%, reaching C$4.45 billion. Operating net income also rose to C$310.2 million from C$248.2 million in 2023. These results reflect Definity's ability to mitigate the impact of catastrophic losses and maintain strong operational performance.
