Slides
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November 7, 2025 Q3-2025 QUARTERLY REPORT
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2 ADVISORY REGARDING FORWARD-LOOKING INFORMATION • This presentation contains forward-looking information. • Forward-looking information is information regarding possible events, conditions or financial performance that is based on assumptions about future economic conditions and courses of action, and it includes information regarding our expectations, intentions, projections or other characterizations of future results, performance, events or circumstances. • Actual results may vary materially from those anticipated in the forward-looking information. • Forward-looking information is based on our opinions, estimates and assumptions. • Our opinions, estimates and assumptions are subject to factors that could cause our actual results or other future events to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors set out in FURTHER ADVISORY REGARDING FORWARD-LOOKING INFORMATION included later in this presentation. • There can be no assurance that our opinions, estimates and assumptions will prove to be correct. • Forward-looking information in this presentation represents our expectations as at the date of this presentation (or as at the d ate it is otherwise stated to be made) and is subject to change after that date. • 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. • Forward-looking information contained in this presentation is expressly qualified by this advisory. • This presentation contains forward-looking statements with respect to the Company’s agreement with The Travelers Companies, Inc. (“Travelers”) to acquire Travelers’ Canadian operations, excluding surety and certain select business lines retained by Travelers, for cash consideration of approximately $3.3 billion (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.
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3 SUPPLEMENT ARY FINANCIAL MEASURES AND NON-GAAP FINANCIAL MEASURES AND RATIOS The Company’s interim financial statements and accompanying notes as at and for the quarter ended September 30, 2025 have been prepared in accordance with International Financial Reporting Standards (“IFRS” or “GAAP”). 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 – Non-GAAP and Other Financial Measures Disclosure) included in this presentation, 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 presentation 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. The information presented in this presentation includes the following supplementary financial measures, non-GAAP financial measures, and non-GAAP ratios: Supplementary Financial Measures: Book value per share, catastrophe losses, financial capacity, gross written premiums, leverage capacity, and underwriting loss from exited lines. Non-GAAP Financial Measures: Core accident year claims and adjustment expenses, distribution income, net claims and adjustment expenses, net commissions, net operating expenses, net premium taxes, net underwriting expenses, net underwriting revenue, non-operating gains, operating income, operating net income, prior year claims development, and underwriting income (loss). Non-GAAP Ratios: Claims ratio, combined ratio, expense ratio, return on equity (“ROE”), operating return on equity (“operating ROE”), operating earnings per common share (“operating EPS”), and certain other ratios.
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ROWAN SAUNDERS President & Chief Executive Officer
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5 Combined Ratio(1) 89.4% Q3-2025 FINANCIAL HIGHLIGHTS 5 Gross Written Premiums(1) $1.23B 1. This is a supplementary financial measure, non-GAAP financial measure, or a non-GAAP ratio. Refer to Supplementary Financial Measures and Non-GAAP Financial Measures and Ratios advisory and Section 12 – Supplementary financial measures and non-GAAP financial measures and ratios in the Q3-2025 MD&A for further details. 2. See "Q3-2025 Capital Management" slide for more information on financial capacity. Operating ROE (TTM)(1) 12.5% Financial Capacity(1,2) ~$2.8B Operating EPS(1) $1.03 7.5% y/y Book Value per Share(1) $33.43 24% y/y
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6 Personal Auto Personal Property Commercial Insurance 12-MONTH INDUSTRY OUTLOOK 6 We expect conditions in auto lines to remain firm as insurers aim to keep pace with the combined impact of loss cost trends, ongoing regulatory constraints in Alberta, and uncertainty related to the extent and impact of potential U.S. tariffs and retaliatory actions. We expect market conditions in personal property to remain firm over the next 12 months, following the record year in 2024 of $9 billion in industry catastrophe losses, and the move to higher reinsurance attachment points. While we expect overall market conditions to remain attractive, we are continuing to see that some commercial segments have become more competitive. We expect overall pricing in commercial insurance to keep pace with loss cost trends, which have normalized since their post-pandemic peak to low to mid-single digits.
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7 Grow GWP at a rate of upper single digit to 10% Achieve a sub-95% full year combined ratio Generate a full year operating ROE in the range of 10% to below teens GWP(1) Growth YTD-2025 Combined Ratio(1) YTD-2025 Operating ROE(1) Q3-2025 TTM KEY FINANCIAL METRICS 8.7% (Adjusted for exited lines) 92.2% 12.5% 1. This is a supplementary financial measure, non-GAAP financial measure, or a non-GAAP ratio. Refer to Supplementary Financial Measures and Non-GAAP Financial Measures and Ratios advisory and Section 12 – Supplementary financial measures and non-GAAP financial measures and ratios in the Q3-2025 MD&A for further details. 2. Current full-year financial targets for 2025, as of November 7, 2025. TARGET(2) TARGET(2) TARGET(2)
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8 Our national broker platform provides ongoing opportunities to scale and grow the earnings profile of the business $1.5B+ GWP Year-End 2026 Target 1. Year to date September 30, 2025. 2. This is a supplementary financial measure, non-GAAP financial measure, or a non-GAAP ratio. Refer to Supplementary Financial Measures and Non-GAAP Financial Measures and Ratios advisory and Section 12 – Supplementary financial measures and non-GAAP financial measures and ratios in the Q3-2025 MD&A for further details. (2) Distribution Income, ~70% Commission Offset, ~30% Full Year Guidance: Portfolio of broker investments is expected to generate an operating income(2) before finance costs, taxes and minority interests, ~20% higher than the $76 million in 2024 Year Activity Acquired GWP(2) 2022 1 acquisition ~$500M 2023 6 acquisitions ~$400M 2024 9 acquisitions ~$200M 2025 YTD(1) 8 acquisitions ~$185M ~$300M GWP ~$1B GWP 70+ offices 12+ offices Top 10 Broker with ~$1.3B GWP(2) • Platform is now the 10th largest P&C insurance broker in Canada • Scale positions in two priority provinces (Ontario and Alberta) with deep management team and proven M&A expertise; entered Nova Scotia through a strategic acquisition in Q2-2025 • Well positioned to source additional opportunities ~$12M GWP OUR LEADING BROKER PLATFORM
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PHILIP MATHER Executive Vice-President & Chief Financial Officer
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10 Q3-2025 PERSONAL AUTO ($ in millions, except as otherwise noted) Q3-25 Q3-24 Δ YTD-25 YTD-24 Δ Gross Written Premiums(1) Adjusted for exit of Sonnet Alberta Auto $517.0 $486.8 6.2% $1,520.2 $1,428.7 6.4% 8.6% Net Underwriting Revenue(1) $469.7 $423.3 11.0% $1,354.8 $1,222.4 10.8% Underwriting Income(1,2) $28.0 $7.1 $20.9 $65.3 $38.1 $27.2 Core AY Claims Ratio(1) 69.1% 70.8% (1.7) pts 69.9% 70.7% (0.8) pts CAT Losses(1) 0.4% 4.0% (3.6) pts 0.4% 1.4% (1.0) pts Prior Year Favourable Claims Development(1) (0.5%) (1.1%) 0.6 pts (0.7%) (0.8%) 0.1 pts Claims Ratio(1,2) 69.0% 73.7% (4.7) pts 69.6% 71.3% (1.7) pts Expense Ratio(1) 25.0% 24.6% 0.4 pts 25.6% 25.6% - pts Combined Ratio(1,2) 94.0% 98.3% (4.3) pts 95.2% 96.9% (1.7) pts Gross Written Premiums(1) (TTM) $1,628 $1,657 $1,713 $1,799 $1,845 $1,867 $1,893 $1,929 $1,959 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Combined Ratio(1,2) ($ in millions) 98.3% 96.1% 97.5% 94.2% 94.0% Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 1. This is a supplementary financial measure, non-GAAP financial measure, or a non-GAAP ratio. Refer to Supplementary Financial Measures and Non-GAAP Financial Measures and Ratios advisory and Section 12 – Supplementary financial measures and non-GAAP financial measures and ratios in the Q3-2025 MD&A for further details. 2. The claims ratio, combined ratio, and underwriting income exclude the impact of discounting.
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11 ($ in millions, except as otherwise noted) Q3-25 Q3-24 Δ YTD-25 YTD-24 Δ Gross Written Premiums(1) $359.6 $329.1 9.3% $960.6 $888.7 8.1% Net Underwriting Revenue(1) $301.9 $275.7 9.5% $877.8 $803.1 9.3% Underwriting Income(1,2) $49.5 ($68.7) $118.2 $83.1 ($7.8) $90.9 Core AY Claims Ratio(1) 50.3% 49.8% 0.5 pts 51.3% 51.1% 0.2 pts CAT Losses(1) 3.6% 46.4% (42.8) pts 9.2% 18.7% (9.5) pts Prior Year Favourable Claims Development(1) (2.4%) (3.6%) 1.2 pts (3.1%) (2.9%) (0.2) pts Claims Ratio(1,2) 51.5% 92.6% (41.1) pts 57.4% 66.9% (9.5) pts Expense Ratio(1) 32.1% 32.3% (0.2) pts 33.1% 34.1% (1.0) pts Combined Ratio(1,2) 83.6% 124.9% (41.3) pts 90.5% 101.0% (10.5) pts Gross Written Premiums(1) (TTM) Combined Ratio(1,2) ($ in millions) Q3-2025 PERSONAL PROPERTY 124.9% 82.8% 94.1% 94.3% 83.6% Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 $1,103 $1,113 $1,124 $1,146 $1,167 $1,184 $1,202 $1,225 $1,256 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 1. This is a supplementary financial measure, non-GAAP financial measure, or a non-GAAP ratio. Refer to Supplementary Financial Measures and Non-GAAP Financial Measures and Ratios advisory and Section 12 – Supplementary financial measures and non-GAAP financial measures and ratios in the Q3-2025 MD&A for further details. 2. The claims ratio, combined ratio, and underwriting income exclude the impact of discounting.
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12 ($ in millions, except as otherwise noted) Q3-25 Q3-24 Δ YTD-25 YTD-24 Δ Gross Written Premiums(1) $351.9 $327.4 7.5% $1,115.2 $1,021.2 9.2% Net Underwriting Revenue(1) $302.5 $282.8 7.0% $892.1 $811.0 10.0% Underwriting Income(1,2) $36.1 $28.5 $7.6 $94.8 $85.1 $9.7 Core AY Claims Ratio(1) 54.5% 52.0% 2.5 pts 55.6% 52.2% 3.4 pts CAT Losses(1) 2.6% 8.8% (6.2) pts 2.9% 6.2% (3.3) pts Prior Year Favourable Claims Development(1) (2.0%) (2.6%) 0.6 pts (2.0%) (1.9%) (0.1) pts Claims Ratio(1,2) 55.1% 58.2% (3.1) pts 56.5% 56.5% - pts Expense Ratio(1) 33.0% 31.7% 1.3 pts 32.9% 33.0% (0.1) pts Combined Ratio(1,2) 88.1% 89.9% (1.8) pts 89.4% 89.5% (0.1) pts Gross Written Premiums(1) (TTM) Combined Ratio(1,2) ($ in millions) Q3-2025 COMMERCIAL INSURANCE $1,193 $1,235 $1,277 $1,324 $1,360 $1,397 $1,427 $1,466 $1,491 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 1. This is a supplementary financial measure, non-GAAP financial measure, or a non-GAAP ratio. Refer to Supplementary Financial Measures and Non-GAAP Financial Measures and Ratios advisory and Section 12 – Supplementary financial measures and non-GAAP financial measures and ratios in the Q3-2025 MD&A for further details. 2. The claims ratio, combined ratio, and underwriting income exclude the impact of discounting. 89.9% 89.0% 90.5% 89.6% 88.1% Q3-24 Q4-24 Q1-25 Q2-25 Q3-25
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13 Q3-2025 CONSOLIDATED PERFORMANCE ($ in millions, except as otherwise noted) Q3-25 Q3-24 Δ YTD-25 YTD-24 Δ Gross Written Premiums(1) Adjusted for exit of Sonnet Alberta Auto $1,228.5 $1,143.3 7.5% $3,596.0 $3,338.6 7.7% 8.7% Net Underwriting Revenue(1) $1,074.1 $981.8 9.4% $3,124.7 $2,836.5 10.2% Underwriting Income(1,2) $113.6 ($33.1) $146.7 $243.2 $115.4 $127.8 Core AY Claims Ratio(1) 59.8% 59.5% 0.3 pts 60.6% 59.8% 0.8 pts CAT Losses(1) 1.9% 17.3% (15.4) pts 3.6% 7.7% (4.1) pts Prior Year Favourable Claims Development(1) (1.5%) (2.3%) 0.8 pts (1.7%) (1.7%) - pts Claims Ratio(1,2) 60.2% 74.5% (14.3) pts 62.5% 65.8% (3.3) pts Expense Ratio(1) 29.2% 28.9% 0.3 pts 29.7% 30.1% (0.4) pts Combined Ratio(1,2) 89.4% 103.4% (14.0) pts 92.2% 95.9% (3.7) pts Gross Written Premiums(1) (TTM) Combined Ratio(1,2) ($ in millions) 103.4% 90.3% 94.5% 92.9% 89.4% Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 1. This is a supplementary financial measure, non-GAAP financial measure, or a non-GAAP ratio. Refer to Supplementary Financial Measures and Non-GAAP Financial Measures and Ratios advisory and Section 12 – Supplementary financial measures and non-GAAP financial measures and ratios in the Q3-2025 MD&A for further details. 2. The claims ratio, combined ratio, and underwriting income exclude the impact of discounting. $3,924 $4,005 $4,114 $4,269 $4,372 $4,448 $4,523 $4,620 $4,706 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25
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14 Q3-2025 CONSOLIDATED PROFITABILITY 1. This is a supplementary financial measure, non-GAAP financial measure, or a non-GAAP ratio. Refer to Supplementary Financial Measures and Non-GAAP Financial Measures and Ratios advisory and Section 12 – Supplementary financial measures and non-GAAP financial measures and ratios in the Q3-2025 MD&A for further details. 2. Underwriting income excludes the impact of discounting. 3. Net investment income is dividend & interest income less investment expenses. 4. Includes corporate expenses, non-controlling interests, and other. Operating Income (1) ($ in millions) ($ in millions, except as otherwise noted) Q3-25 Q3-24 Δ YTD-25 YTD-24 Δ Underwriting Income(1,2) $113.6 ($33.1) $146.7 $243.2 $115.4 $127.8 Net Investment Income(3) $54.1 $49.0 $5.1 $154.6 $147.1 $7.5 Distribution Income(1) $18.2 $15.8 $2.4 $51.1 $43.0 $8.1 Interest Expense ($5.0) ($2.6) ($2.4) ($10.1) ($7.6) ($2.5) Other(4) ($13.1) ($13.0) ($0.1) ($39.6) ($35.3) ($4.3) Operating Income(1) $167.8 $16.1 $151.7 $399.2 $262.6 $136.6 Operating Net Income(1) $125.2 $14.6 $110.6 $300.0 $199.8 $100.2 Operating EPS (in dollars)(1) $1.03 $0.13 692.3% $2.54 $1.71 48.5% Operating ROE (TTM)(1) 12.5% 10.7% 180 bps ($33.1) $97.0 $55.0 $74.6 $113.6 $49.0 $51.1 $49.8 $50.7 $54.1 $15.8 $11.4 $11.0 $21.9 $18.2 ($13.0) ($10.5) ($12.7) ($13.8) ($13.1) $16.1 $147.0 $100.5 $130.9 $167.8 ($2.6) ($2.0) ($2.6) ($2.5) ($5.0) Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Underwriting Income Net Investment Income Distribution Income Other Interest expense (1,2) (3) (4) (1)
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15 Consolidated Book Value q/q Δ($ in millions, except as otherwise noted) Sep 30-24 Jun 30-25 Sep 30-25 Total assets $7,532 $8,304 $9,558 Investments $5,069 $5,579 $6,879 Total liabilities $4,272 $4,305 $5,313 Insurance contract liabilities $3,659 $3,654 $3,789 Equity attributable to common s/h $3,090 $3,763 $4,007 Book value per share(1) $26.96 $31.39 $33.43 Q3-2025 BALANCE SHEET STRENGTH ($ in millions, except as otherwise noted) Jun 30-25 Sep 30-25 Excess Capital at: Definity Insurance Company and ICA subs. $149 $168 Definity Financial Corporation and non-ICA subs. $925 $1,972 Total Excess Capital $1,074 $2,140 Leverage Capacity(1,2) $1,600 $707 Financial Capacity(1) $2,674 $2,847 ($ in millions) 1. This is a supplementary financial measure, non-GAAP financial measure, or a non-GAAP ratio. Refer to Supplementary Financial Measures and Non-GAAP Financial Measures and Ratios advisory and Section 12 – Supplementary financial measures and non- GAAP financial measures and ratios in the Q3-2025 MD&A for further details. Financial capacity excludes the $1.1 billion excess capital term loan facility which will be temporarily drawn upon to fund the Travelers Transaction. 2. The estimated amount of leverage capacity assuming a target capitalization of 30% debt. Debt may include other forms, such as hybrids. 3. Non-operating gains pre-tax of $81.5 million (inclusive of a $27.8M gain on the change in foreign exchange forward contract hedge) less income tax expense of $13.6 million. 4. Other consists of other changes in book value including foreign currency gains and losses on the foreign currency hedge, revaluations in the pension plan asset and changes in contributed surplus related to equity compensation. 5. Excluding the $1.1B Excess Capital Term Loan given as this debt will be settled shortly after transaction close. Long Term Capital Structure Equity, 100% Equity, ~70% Equity, 75% Debt, ~30% Debt, 25% Today At Close Long Term Target Our leverage target remains at 25%, in-line with previously provided guidance and other rated Canadian P&C peers At IPO At Transaction Close (5) Target (4) (1) (1,3) $3,763 $4,007 $125 $68 $74 ($23) Beginning book value attributable to common shareholders, June 30, 2025 Operating net income Non-operating gains (post-tax) Dividends to common shareholders Other Ending book value attributable to common shareholders, September 30, 2025
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16 Financial Capacity q/q Δ $2,674 $2,847 $125 $68 $21 ($18) ($23) Financial capacity Jun 30, 2025 Operating net income Non-operating gains (post- tax) Broker acquisitions Dividends paid to common shareholders Other Financial capacity Sep 30, 2025 Capital Deployment Priorities Q3-2025 CAPITAL MANAGEMENT Capital Management Actions We retain capital to support the growth in our premium volumes as well as invest in talent and technology that advance our strategic objectives We intend to have a sustainable and growing dividend per common share that will be reviewed on a regular basis We intend to continue to actively pursue carrier and distribution opportunities in the Canadian market. To fund these transactions, we expect to utilize excess capital, and access the capital markets Organic Growth Common Shareholder Dividends Inorganic Growth ($ in millions) (1) (1,2) (3) 1. This is a supplementary financial measure, non-GAAP financial measure, or a non-GAAP ratio. Refer to Supplementary Financial Measures and Non-GAAP Financial Measures and Ratios advisory and Section 12 – Supplementary financial measures and non-GAAP financial measures and ratios in the Q3-2025 MD&A for further details. 2. Non-operating gains pre-tax of $81.5 million (inclusive of a $27.8M gain on the change in foreign exchange forward contract hedge) less income tax expense of $13.6 million. 3. Other represents changes in regulatory capital available (inclusive effective FX revaluation gain of $55m) and capital required, other cash flows in non-ICA entities, and changes in leverage capacity not related to broker acquisitions.. 4. As at September 30, 2025, an amount of $114.3M (June 30, 2025: $114.3M) has been drawn under this credit facility. 5. The breakdown of additional bank facilities to support the Travelers Transaction is as follows: $1,100M Excess Capital Term Loan and $375M Bank Term Loan (1) • Senior Unsecured Notes raised in Q3-25 of $1.0B to be used to fund the Travelers Transaction • We have secured additional bank credit facilities of $1.475B(5) and continue to have access to a $1.0B unsecured committed credit facility(4) • As of September 30, we have completed eight broker transactions totaling ~$163M in 2025 • DBRS reaffirmed the trends on Definity Insurance Company of Positive and reaffirmed its rating of ‘A’. DBRS also issued a provisional credit rating of BBB (high) with a Positive trend on Definity Financial Corporation’s Senior Unsecured Notes
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17 May 27, 2025 Definity announces $3.3 billion Travelers Transaction STRONG STRATEGIC FIT ✓ Establishes Definity as the #4 P&C insurer in Canada(1) and strengthens our leadership position in the broker channel ✓ Enables scaling of core commercial lines, while accelerating expansion into highly desirable specialty lines ✓ Increases presence in personal lines leveraging scale benefits and digital platform synergies ✓ Expanded offerings and consistent service proposition drives enhanced traction and growth within broker channel COMPELLING FINANCIAL RATIONALE ✓ Value creation through scale benefits and platform efficiencies with estimated run- rate synergies of $100 million (pre-tax), before considering loss cost improvements ✓ Optimizes balance sheet via strategic deployment of excess capital and utilization of financial leverage capacity ✓ Expected to enhance operating ROE(2) by over 200 bps(3) to sustainably target mid- teens post integration ✓ Capital ratio to remain strong with minimum capital test expected to be maintained above 190% operating target INTEGRATION PLANNING UNDERWAY 1. MSA Research, based on 2024 insurance revenue. 2. This is a supplementary financial measure, non-GAAP financial measure, or a non-GAAP ratio that does not have a standardized meaning prescribed by GAAP and is not necessarily comparable to similar measures provided by other companies. Refer to “Supplementary Financial Measures and Non-GAAP Financial Measures and Ratios” in this presentation and “Section 12 – Supplementary Financial Measures and Non-GAAP Financial Measures and Ratios” in our latest MD&A, which is incorporated by reference herein, for further details. 3. Includes run-rate expense synergies and excludes impact of non-recurring integration costs. June 11, 2025 Definity completes $385 million private placements of common shares September 12, 2025 Definity completes $1 billion inaugural bond financing First half of Q1-2026 Expected deal close TRAVELERS TRANSACTION UPDATE July 17, 2025 Unconditional clearance from Competition Bureau• Joint transition planning with Definity and Travelers well advanced; all workstreams are fully engaged and working together towards Day 1 • Comprehensive change management plan in place to support Day 1 focused on employee, broker and customer experience
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18 QUESTIONS?
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19 FURTHER ADVISORY REGARDING FORWARD-LOOKING INFORMATION Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that we considered appropria te 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 Section 1 1 – “Risk Management and Corporate Governance” of our MD&A for the year ended December 31, 2024 should be considered carefully by readers. Forward-looking information contained in this presentation is expressly qualified by the foregoing cautionary statements. • Definity’s ability to appropriately collect, store, transfer, and dispose of information; • Definity’s reliance on information technology systems, software, internet, network, data centre, voice or data communications services and the potential disruption or failure of those systems or services, including disruption as a result of cyber security risk or of a third-party service provider; • failure of key service providers or vendors to provide services or supplies as expected, or comply with contractual or business terms; • Definity's ability to obtain, maintain and protect its intellectual property rights and proprietary information or prevent third parties from making unauthorized use of our technology; • Definity’s ability to effectively govern the use of models, artificial intelligence, and generative AI technology; • compliance with and changes in legislation or its interpretation or application, or supervisory expectations or requirements, including changes in the scope of regulatory oversight, effective income tax rates, risk -based capital guidelines, accounting standards, and generally accepted actuarial techniques; • changes in domestic or foreign government policies, such as cross-border tariffs or trade policies, may negatively impact the Canadian economy and the P&C insurance industry and/or exacerbate other risks to Definity; • failure to design, implement and maintain effective controls over financial reporting and disclosure which could have a material adverse effect on our business; • deceptive or illegal acts undertaken by an employee or a third party, including fraud in the course of underwriting insurance or administering insurance claims; • Definity’s ability to respond to events impacting its ability to conduct business as normal; • Definity’s ability to implement its strategy or operate its business as management currently expects; • general business, economic, financial, political, and social conditions, particularly those in Canada; • the emergence or continuation of widespread health emergencies or pandemics, and their impact on local, national, or international economies, as well as their heightening of certain risks that may affect our business or future results; • the competitive market environment and cyclical nature of the P&C insurance industry; • the introduction of advanced technologies, disruptive innovation or alternative business models by current market participants or new market entrants; • distribution channel risk, including Definity’s reliance on brokers to sell its products; • Definity’s dividend payments being subject to the discretion of the Board and dependent on a variety of factors and conditions existing from time to time; • the Company’s implementation of a new normal course issuer bid (“NCIB”); • Definity’s dependence on the results of operations of its subsidiaries and the ability of the subsidiaries to pay dividends; • Definity’s ability to manage and access capital and liquidity effectively; • management’s estimates and judgments in respect of IFRS 17 and its impact on various financial metrics; • periodic negative publicity regarding the insurance industry, Definity, Definity Insurance Foundation, or the Canadian operations of Travelers; and • management’s estimates and expectations in relation to interests in the broker distribution channel and the resulting impact on growth, income, and accretion in various financial metrics. • Definity’s ability to continue to offer competitive pricing or product features or services that are attractive to customers; • Definity’s ability to appropriately price its insurance products to produce an acceptable return, particularly in provinces where the regulatory environment requires auto insurance rate increases to be approved or that otherwise impose regulatory constraints on auto insurance rates; • Definity’s ability to accurately assess the risks associated with the insurance policies that it writes; • Definity’s ability to assess and pay claims in accordance with its insurance policies; • Definity’s ability to obtain adequate reinsurance coverage to manage risk; • Definity’s ability to accurately predict future claims frequency or severity, including the frequency and severity of weather-related events and the impact of climate change; • Definity’s ability to address inflationary cost pressures through pricing, supply chain, or cost management actions; • the occurrence of unpredictable catastrophe events; • litigation and regulatory actions, including potential claims in relation to demutualization and our IPO and unclaimed demutualization benefits and the tax treatment of related amounts transferred to the Company, and COVID-19- related class-action lawsuits that have arisen and which may arise, together with associated legal costs; • Definity's ability to successfully identify, complete, integrate and realize the benefits of acquisitions or manage the associated risks; • the uncertainty of obtaining in a timely manner, or at all, the regulatory approvals required to complete the Travelers Transaction; • Definity’s ability to improve its combined ratio, retain and attract new business, retain key employees, achieve synergies, and maintain market position during and after the integration of the Travelers Transaction; • Definity’s ability to complete the integration of the Travelers Transaction within anticipated time periods and at the expected cost; • estimates and expectations in relation to future economic and business conditions and other factors in relation to the Travelers Transaction and any resulting impacts on growth and accretion in various financial metrics, including the pricing and terms of related financing; • unfavourable capital market developments, interest rate movements, changes to dividend policies or other factors which may affect our investments or the market price of our common shares; • changes associated with the transition to a low-carbon economy, including reputational and business implications from stakeholders’ views of our climate change approach or of our environmental or climate change -related representations (i.e. “greenwashing”), those of our industry, or those of our customers; • Definity’s ability to successfully manage credit risk from its counterparties; • foreign currency fluctuations; • Definity’s ability to meet payment obligations as they become due; • Definity’s ability to maintain its financial strength rating or credit ratings; • Definity’s dependence on key people; • Definity’s ability to attract, develop, motivate, and retain an appropriate number of employees with the necessary skills, capabilities, and knowledge;
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20 CONTACT US Investor Relations General Investor Inquiries 1-866-902-4724 (TF) IR@definity.com Dennis Westfall VP, Investor Relations 416-435-5568 dennis.westfall@definity.com Definity Financial Corporation 111 Westmount Rd. S., P.O. Box 2000 Waterloo, ON N2J 4S4 1-800-265-2180 (TF) 519-570-8200 Sarah Attwells AVP, Corporate Communication 226-753-1130 sarah.attwells@definity.com Corporate Communications General Inquiries