WATERLOO, ON, Sept. 5,
2023 /CNW/ - Definity Financial Corporation (TSX:
DFY) today released its estimate of the financial impact to
Definity arising from catastrophe losses in July and August 2023. Although the British Columbia wildfires were the single
largest contributor, at least ten events reached Definity's
catastrophe loss threshold in those two months.1 Other
notable events included severe wind and rainstorms leading to
flooding in Ontario, Quebec, and Nova
Scotia, and tornados in Ontario and Quebec. Our personal property business
experienced the vast majority of the losses.
"Severe storms and wildfires continue to impact communities
across the country. Our claims team is working tirelessly to
provide support for our customers and affected communities so they
can recover as quickly as possible," said Rowan Saunders, Definity's President and Chief
Executive Officer. "The ongoing elevated level of severe weather
events underscores the importance of building a resilient
organization capable of delivering on our purpose to help our
clients and communities adapt and thrive."
Definity estimates a negative impact on operating income for
July and August 2023 of approximately
$120 million net of reinsurance
recoveries and inclusive of reinstatement premiums, or
approximately $0.76 per common share,
net of taxes.
This assessment is based on information received to date from
customers, as well as analysis of exposures. Given that the Q3 2023
catastrophe losses will be materially above our original
expectation, we expect to provide an update for the full quarter
during the first half of October.
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 over $3.8
billion in gross written premiums for the 12 months ended
June 30, 2023 and approximately
$2.7 billion in equity attributable
to common shareholders as at June 30,
2023.
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
future events, 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, including the fact that the referenced
wildfires are still active. Such risks and uncertainties are
included in the "Cautionary Note Regarding Forward-looking
Information" section of the Company's Q2-2023 Management's
Discussion and Analysis dated August 3,
2023 and the "Risk Management and Corporate Governance"
section of Definity's Management's Discussion and Analysis for the
year ended December 31, 2022, 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 September 5,
2023 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 Measures
This news release contains a measure of the negative impact on
net 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.
1We consider losses to be catastrophe losses if they
are the result of either i) an event causing gross losses in excess
of $2 million, and generally greater
than 100 claims, or ii) a single claim with a gross loss in excess
of $3 million.
SOURCE Definity Financial Corporation