WATERLOO, ON, June 2, 2022
/CNW/ - Definity Financial Corporation ("Definity") (TSX: DFY)
today released its estimate of the financial impact arising from
the severe storm system that hit Ontario and Québec on May 21st.
"The severe weather that affected Ontario and Québec in late May was a
reminder of the importance of delivering on our purpose to
support our clients and communities." said Rowan Saunders, Definity's President and Chief
Executive Officer. "Our claims team is responding with
on-the-ground support to help our customers and broker partners
rebuild their communities and recover as quickly as possible."
While the situation continues to develop, Definity estimates a
negative impact on net income of between $26
million and $29 million, or
between $0.22 and $0.25 per share currently outstanding, net of
taxes and reinsurance.
This assessment is based on information received to date from
customers, as well as analysis of exposures.
About Definity Financial
Corporation
Definity Financial Corporation is the parent company to some of
Canada's most long-standing and
innovative multi-channel, property and casualty insurance companies
and distributors, including Economical Insurance, Sonnet Insurance,
Family Insurance Solutions, and Petline Insurance. Definity had
over $3.3 billion in gross written
premiums for the 12 months ended March 31,
2022 and over $7.5 billion in
assets as at March 31, 2022.
Forward-looking statements
This news release may contain forward-looking information within
the meaning of applicable securities laws, which reflects
Definity's current expectations regarding future events, including
statements relating to the financial impact caused by the
May 21, 2022 storm system in
Ontario and Québec, the terms and
operation of Definity's reinsurance arrangements, the anticipated
effect of applicable and future federal and provincial tax
regulations, and Definity's potential exposure in Ontario and Québec. 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 include Definity's
ability to precisely assess its total exposure in Ontario and Québec in light of the on-going
receipt of information from customers, the adequacy of its
reserves, and its ability to successfully alleviate risk through
reinsurance arrangements. Actual results could differ materially
from those projected herein. 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 measures
This news release contains a measure of the negative impact on
net income, net of taxes and reinsurance, that 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