- Definity Financial reported fourth-quarter insurance revenue of C$1.12 billion, marking a 12% increase compared to the previous year and surpassing the estimated C$1.05 billion.
- The company’s net operating income for the quarter was C$110.4 million, showing a 9.6% year-over-year growth.
- Gross written premiums reached C$1.11 billion, reflecting a 7.4% year-over-year increase and aligning with estimates.
- Definity Financial has grown its premiums by $1.2 billion since its IPO three years ago.
- The company is now the 10th largest property and casualty insurance broker in Canada.
- Book value per share has increased by over 40% since the IPO.
- Quarterly dividends per share have increased by 50%.
- Effective strategies in catastrophe response, product design, and accumulation management helped mitigate losses significantly.
- The fourth quarter saw strong underwriting income and increasing contributions from both the insurance broker platform and net investment income.
- The return of C$150 million in restricted cash contributed to a 17.6% increase in book value per share in 2024, bringing it to C$29.13.
- Analyst ratings stand at 1 buy, 9 holds, and 0 sells.
A look at Definity Financial Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Definity Financial Corp, an insurance company operating in Canada, shows a promising long-term outlook based on Smartkarma Smart Scores. With a solid score of 4 in Growth, 4 in Resilience, and 4 in Momentum, the company is positioned well for future expansion and sustained performance. This indicates that Definity Financial is likely to experience steady growth, demonstrate resilience in challenging times, and exhibit positive momentum in the market.
While the Value score is at 3 and the Dividend score at 2, suggesting a moderate value proposition and dividend outlook, the overall high scores in Growth, Resilience, and Momentum paint a favorable picture for Definity Financial Corp. Investors may find this company attractive for its growth potential, resilience to market fluctuations, and positive market momentum in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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