First Read Definity Financial Corp 2Q26: Solid 2Q print driven by Personal Auto and Property

研报英文原文证据摘录

First Read Definity Financial Corp 2Q26: Solid 2Q print driven by Personal Auto and Property

Global Research

30 July 2026ab

First Read

EquitiesDefinity Financial Corp

2Q26: Solid 2Q print driven by Personal Auto Americas

and Property Insurance, Property & Casualty

12-month rating Neutral

12m price target C$75.00

How would we expect investors to react?

We expect a positive reaction to the EPS beat, driven by a stronger ULCR in Personal

Auto, which beat cons. by ~20bps, and a Personal Property ULCR that improved ~70bps Price (30 Jul 2026) C$78.51

y/y. More importantly, mgmt increased its run-rate expense synergy target by +25% to RIC: DFY.TO BBG: DFY CN

C$125m. With 40,000 policies converted and retention trends tracking in line with

Trading data and key metrics

expectations, integration risk appears to be declining, in our view. Premium growth also

remained strong (+34.7% y/y from integration), while underlying growth was in the 52-wk range C$80.80-62.20

double-digits (+10%), supported by pricing and market share gains, particularly in small Market cap. C$9.55b/US$6.82b

business and specialty lines. The key debates for the call are likely to center on Shares o/s 122m (COM)

Commercial underlying growth, which remained MSD amid large-account competition, Free float 100%

and mgmt's views on Personal Auto pricing and loss-cost trends. Avg. daily volume ('000) 171

Avg. daily value (m) C$12.3

Has the company's outlook/guidance changed? Common s/h equity (12/26E) C$4.36b

No Change in guidance. Mgmt reiterated their goal to deliver a sustainable, mid-teens P/BV (12/26E) 2.2x

operating ROE post the Traveler's integration. Previous guidance included total GWP ~

EPS (UBS, diluted) (CAD)

$6.5b in 2026 (2/3 Personal and 1/3 Commercial), Personal Auto CR in the mid-to-

12/26E