Catastrophe losses weigh down Definity’s Q3 2023 results

Catastrophe losses weigh down Definity’s Q3 2023 results | Insurance Business Canada

Insurance News

Catastrophe losses weigh down Definity’s Q3 2023 results

It recorded a 102.5% combined ratio for the quarter

Insurance News

By
Abigail Adriatico

Definity Financial Corporation (Definity) has reported its financial results for the third quarter of 2023.

Natural catastrophes weighed down the organization’s performance. Definity’s underwriting loss for the quarter was $22.8 million with a combined ratio of 102.5%, including 13.5 points of previously announced cat losses that primarily hit its personal property book.

Operating net income was $17.6 million in Q3 2023 compared to $45.8 million in the same period last year, resulting in an EPS of $0.15 per share; trailing 12-month operating ROE was 8.8%.

Definity said that gross written premium growth was at 9.0% in Q3 as firm market conditions in personal property and ommercial lines persisted.

“Severe storms and wildfires affected communities across the country this summer, and our catastrophe response teams stepped up for our customers,” said Rowan Saunders, Definity president and CEO.

“While these events had a significant impact on our underwriting performance, we continued to leverage our strong broker proposition to drive solid overall premium growth of 9%.

“Our efforts to diversify and strengthen the earnings profile of the business were evidenced by strong commercial insurance results and a growing contribution from our insurance broker platform.

“Overall, we delivered a solid underlying performance, which, combined with robust net investment income, resulted in third quarter operating net income of $17.6 million, or $0.15 per share.”

Definity said is financial position maintained its strength as book value per share was $22.87, which was 9.6% higher than the previous year.

“We continue to successfully deploy capital to build a leading insurance broker platform, enabling us to diversify our earnings with repeatable distribution income,” said Philip Mather, Definity’s EVP and CFO.

“With substantial financial capacity, and the regulatory approval process for our planned CBCA continuance nearing completion, there is significant flexibility available to support our ongoing reinvestment in and growth of our business,” he added.

What do you think about this story? Let us know your thoughts in the comments below.