WATERLOO, ON, Oct. 6, 2026 /CNW/ -- Definity Financial Corporation (TSX: DFY) today announced that catastrophe losses¹ in the third quarter of 2026 would negatively impact underwriting income by approximately $190 million net of reinsurance recoveries, representing $1.15 per common share net of taxes and reinsurance. This announcement updates and extends Definity's September 3, 2026 announcement of its preliminary estimate of the financial impact arising from catastrophe losses in July and August 2026.

The table below provides a breakdown of the estimated catastrophe losses by line of business during the third quarter of 2026:

Previously disclosed events in July and August included severe rainstorms that caused flooding in Ontario and Alberta, as well as wildfires in British Columbia. Subsequently, a large storm system brought damaging winds, hail and flooding to southern Ontario in early September. All assessments and estimates are based on information received from customers to date, as well as an analysis of exposures.

"Severe weather-related events this summer continued into September and impacted communities across the country," said Rowan Saunders, President and CEO, Definity. "Throughout these events we remain focused on supporting customers by leveraging the expertise of our teams and our proven catastrophe response capabilities."

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 approximately $6.4 billion in gross written premiums (pro forma with the Travelers Transaction²) for the 12 months ended June 30, 2026 and $4.2 billion in equity attributable to common shareholders as at June 30, 2026.

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 the events noted above, 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. Such risks and uncertainties are included in the "Cautionary Note Regarding Forward-looking Information" section of the Company's Q2-2026 Management's Discussion and Analysis dated July 30, 2026 and the "Risk Management and Corporate Governance" section of Definity's Management's Discussion and Analysis for the year ended December 31, 2025, 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 the date it is issued 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 MEASURE

This news release contains a measure of the negative impact on underwriting income net of reinsurance recoveries which 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.

SOURCE Definity Financial Corporation