Growth across all lines boost Definity’s 2025 Q4 premium growth

Strong cross-portfolio performance pushed Definity Financial Corporation’s fourth quarter 2025 combined ratio to 89.9%. During last year’s final quarter, gross written premium grew 9.2%, with full-year growth hitting 8.8%.

Definity’s full-year combined ratio for 2025 reached 91.6%, due to combined ratios for both personal property and commercial insurance dipping below 90%. A reduction in catastrophe-related losses contributed to improved combined ratio performance for both personal lines (auto and property) and across commercial lines, the company said.

“In areas like small commercial and personal lines, conditions remain strong, and we’re achieving rates that stay ahead of loss trends where the market is most competitive,” president and CEO Rowan Saunders said on an earnings call Friday.

Last May, Definity announced a deal to acquire Travelers’ Canadian business. The $3.3-billion acquisition closed on Jan. 2, 2026, and sets Definity up to become a Top 5 P&C insurer in Canada.

“Since completing our landmark [demutualization] four years ago, we have grown premiums by $1.6 billion, delivered consistent underwriting profits, built the 10th-largest property and casualty insurance brokerage in Canada, grown book value per share by more than 63%…,” Saunders added in a press release.

“The additional premiums from our recently closed Travelers transaction bring us to a pro forma $6.3 billion in combined annual gross written premiums, which represents a Top 5 position in the industry.”

Related: How to tell if the Definity-Travelers deal is successful

In 2025 Q4, Definity increased its gross written premiums (GWP) by 9.2% (up to $102.6 million) from 2024 Q4, including growth in all lines of business, the company said.

Personal lines GWP grew 10.4% and was driven by increased policies sold and premium rate increases. Commercial lines GWP rose 6.9%, driven by both retention and “ongoing rate achievement, and continued expansion in small business and specialty.”

Direct channel GWP slipped 1.9% in 2025 Q4 (a 0.3% decrease for the year, excluding Sonnet Alberta personal auto in both periods), driven mostly by reduced contribution from industry pools. The figure is “adjusted for the sonnet Alberta exit,” said Definity’s executive vice president and chief financial officer Philip Mather during the earnings call.

On an annual basis, GWP increased $360 million (8.1%) compared to full-year 2024. And annual personal lines GWP climbed 7.9%, while commercial lines GWP jumped 8.6%.

Related: Definity approved for rate cap to prevent post-merger market dislocation

Underwriting income during 2025 Q4 was $111.5 million. “The improvement in the combined ratio in Q4 2025 was driven by a decrease in the expense ratio,” the company said in its release. Underwriting income for the full year rose by $142.3 million.

“In the fourth quarter, strong underwriting income, together with meaningful contributions from our insurance brokerage platform and net investment income, combined to generate operating net income of $120.7 million,” said Mather in Definity’s earning press release.

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“We enter 2026 with top- and bottom-line momentum in all three lines of business, which is an ideal foundation from which to begin the integration of our recently closed $3.3-billion acquisition.”

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

Editor’s note: This is a developing story and will be updated, including follow-up stories next week.

Phil Porado

Phil, an award-winning journalist with over 30 years of experience in financial topics, has been managing editor of Canadian Underwriter for more than three years.