Definity Financial Corporation, a Toronto-based property and casualty insurer that sells coverage through broker networks and its direct-to-consumer brand Sonnet, closed its acquisition of Travelers' Canadian P&C insurance operations for approximately $3.3 billion, pushing the company to about $6.3 billion in combined annual gross written premiums and a position among the top five P&C insurers in Canada.
The company's combined ratio — a measure of how much it pays out in claims and expenses for every dollar of premiums collected; a lower number signals a healthier insurer — improved to 89.9% in Q4 2025 from 90.3% in Q4 2024, with underwriting income rising to $111.5 million from $97.0 million. For the full year, the combined ratio improved to 91.6% from 94.5% in 2024, driven by strong results in personal property and commercial insurance.
Personal auto premiums rose 9.7% in the fourth quarter and 7.2% for the full year, driven by rate increases and unit growth. The personal auto combined ratio improved to 95.0% in Q4 from 96.1% a year earlier, reflecting earned rate increases, improved Sonnet profitability and lower expenses. Overall gross written premiums — the total premiums charged before reinsurance costs — increased $102.6 million or 9.2% in Q4, with personal lines up 10.4% and commercial lines up 6.9%. For the full year, overall premiums grew $360.0 million or 8.1%.
Net investment income rose to $61.1 million in Q4 from $51.1 million a year earlier, and to $215.7 million for the full year from $198.2 million in 2024.
"2025 was a transformational year for Definity, as we delivered strong financial results while announcing a milestone acquisition. We again met or exceeded all financial targets for the year, with top-line growth of 8.8%, a full-year combined ratio of 91.6%, and an operating ROE (return on equity) of 12.2%," president and chief executive officer Rowan Saunders said. "Since completing our landmark IPO 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%, and increased our quarterly dividends per share by 72%."
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