Definity plowing ahead on plan to triple in size within the next 10 years 

Definity is one year into its 10-year plan to triple the size of the company, and become a top three player in Canada’s P&C market, president and CEO Rowan Saunders says at the Desjardins Inaugural Toronto Conference on Nov. 25.  

Definity’s plan is to continue growing organically at twice the rate of the industry, while also making more acquisitions. 

“We put this plan last year [in front of] our board of directors. We’re only one year into it, and we’re ahead of plan,” Saunders says.  

“As I think about that plan, I think that’s our thesis of market consolidating, plus the organic drivers, plus Sonnet coming on board. I think it gives us quite a bit of confidence that [this] is a realistic target for ourselves,” he adds. “I think outperform[ing] the industry organically is realistic. We’ve done that, at least, as we’ve targeted.” 

Meanwhile, the inorganic growth portion of the plan will require some M&A, Saunders says: “I think Travelers is a good example, but it would still require [another deal] like Travelers — another $1.5 billion to $2 billion in acquired premium. That could be one company. It could be a couple of companies.” 

The Travelers Canada deal, announced in May, sets Definity up to become a Top 5 P&C insurer in Canada. The $3.3 billion acquisition is expected to close in the first quarter of 2026.  

Commercial consolidation could lean Canadian

When asked whether P&C consolidation might pick up speed, Saunders suggests the industry is entering another acceleration phase. And this phase will see more domestic insurers, rather than foreign insurers, gaining commercial and specialty market share in Canada, he predicts. 

He points to the Travelers Canada deal as one such example.  

“A company like Travelers — which is a really impressive organization, experts in insurance — they had…$1.5-billion [in] business in Canada,” he says. “They made the decision that was subscale, and they believe scale is going to be important to them going forward. So that’s how we were able to convince them to partner with us and to sell their business.  

Related: What’s next for Definity following Travelers Canada acquisition

“I think that actually then makes many other companies that are foreign players in Canada think about, ‘Well, we’re not even $1.5 billion. Travelers can’t make it. How are we going to make it?” 

Foreign entities, rather than domestic entities, have historically held the largest share of the specialty and large commercial market in Canada, Saunders notes.  

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“Well, now you’ve got some very strong Canadian [companies], that happened to be publicly traded…that are very good at specialty and large commercial, and they’re taking share,” he said. “I think those international players are flatlining, and they’re going to struggle a little bit.” 

On the personal lines side, he adds, consolidators will be “anti-selecting” acquisitions based on factors such as brand, technology, and the use of AI. 

Alyssa DiSabatino

Alyssa Di Sabatino has been a reporter for Canadian Underwriter since 2021, covering industry trends, market developments, and emerging risks.