Definity Releases Estimate of Financial Impact From Flooding in British Columbia

WATERLOO, ON, Dec. 9, 2021 /CNW/ - Definity Financial Corporation ("Definity") (TSX: DFY) releases estimate of the financial impact on Definity arising from flooding in British Columbia.

"We stand with affected residents and business owners in British Columbia during this difficult time, and our priority is to ensure that customer needs are met," said Rowan Saunders, Definity's President and Chief Executive Officer. "Through Economical Insurance, Sonnet, and Family Insurance, we are working diligently to support individuals, families, and business owners whose property has sustained physical damage because of flooding. Our team is responding quickly to work on assessing and resolving claims."

While the situation continues to develop, Definity estimates that the November flooding in British Columbia will result in a negative impact on net income of between $21 million and $25 million, or between $0.18 and $0.22 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, and it assumes the recent severe weather in British Columbia will not continue.

About Definity Financial Corporation
Definity Financial Corporation (TSX: DFY) is a multi-channel insurance company, offering personal and commercial insurance through Economical Insurance, Sonnet Insurance Company, Petline Insurance Company, and Family Insurance Solutions Inc. Through this family of brands, Definity had $3.1 billion in gross written premiums for the 12 months ended September 30, 2021.

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 flooding in British Columbia, 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 British Columbia. 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 British Columbia in light of on-going events, 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