Definity Financial Corporation

Good morning, ladies and gentlemen, and welcome to the DFINITY Financial Corporation third quarter of 2025 financial results conference call and webcast conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Friday, November 7th, 2025. I would now like to turn the call over to Vice President of Investor Relations, Dennis Westphal. Please go ahead.

Thank you. Good morning, everyone. Thank you for joining us on the call today. A link to our live webcast and background information for the call is posted on our website at vicinity.com under the Investors tab. As a reminder, the slide presentation contains a disclaimer on forward-looking statements, which also applies to our discussion on the conference call. Joining me on the call today are Rowan Saunders, President and CEO, Philip Mather, EVP and CFO, Paul McDonald, EVP of Personal Insurance and Digital Channels, and Fabian Rickenberger, EVP of Commercial Insurance and Insurance Operations. We'll start with formal remarks from Rowan and Phil, followed by a Q&A session, during which Paul and Fabian will also be available to answer your questions. With that, I will ask Rowan to begin his remarks.

Thanks, Dennis, and good morning. Last night, we reported record third quarter results that continue the momentum for DFINITY in what has truly been an exciting year for the company. During the quarter, we made further progress towards the closing of the announced traveler's transaction, including finalizing the required financing via our inaugural $1 billion bond offering. while maintaining our focus on delivering the targeted performance of our existing business, as you can see on slide five. Our strong unranked performance, higher net investment income, and continued momentum in our insurance broker platform combined to produce third quarter operating net income of $125.2 million, or $1.03 a share. We delivered a sub-90 combined ratio in the quarter, well ahead of our expectations, as our reported core of 89.4% reflected ongoing actions to improve our operational efficiency and included only 1.9 points of cap losses. From a top-line perspective, we continued to deliver growth in line with our expectations. as gross written premiums increased 7.5% in the quarter to exceed $4.7 billion over the last 12 months. We ended the third quarter with book value per share of $33.43, 24% higher than a year ago, inclusive of strong financial results as well as our private placements of common shares to fund part of the traveler's transactions. We generated an operating return on equity of 12.5% over the past 12 months, reflective of the continued delivery against our organic levers. Sonnet continues to generate a profit for the year, while we remain on track to deliver the targeted improvements from expenses by the end of 2026. Early experience from our claims transformation is encouraging. and we are well positioned to achieve the targeted claims improvements by the end of 2027. I'd note that the improvement in our operating ROE has come along with a 17% increase in our average adjusted equity over the past year. Moving to slide six, our industry outlook is largely unchanged. We expect conditions and auto lines to remain firm. as insurers aim to keep pace with the combined impact of lost cost trends, ongoing regulatory constraints in Alberta, and uncertainty related to the extent and impact of potential U.S. tariffs and retaliatory actions. We expect market conditions and personal property to also remain firm over the next 12 months, particularly following last year's record level of industry catastrophe losses and the structural move to higher reinsurance attachment points. In commercial insurance, while we expect overall market conditions to remain attractive, we are continuing to see that some commercial segments have become more competitive. We expect overall pricing in commercial insurance to keep pace with lost cost trends, which have normalized to low to mid-single digits. Slide 7 shows our key financial targets for 2025. As you can see, both top-line growth and underlying profitability are at or better than target through nine months, while our operating ROE of 12.5% puts us at the upper end of our target range. We remain confident in our ability to reach a sustainable mid-teens operating ROE post-integration of the traveler's transaction. Slide 8 illustrates the composition of our national broker platform. We've made great progress with M&A activity and solid organic growth, which has us ahead of where we thought we'd be as we close in on our target for at least $1.5 billion of managed premiums by the end of next year. We continue to view our national broker platform as a vehicle to diversify and strengthen the earnings profile of the business. Year-to-date, this platform has delivered more than $73 million in aggregate contribution to operating results, well ahead of our objective to increase it by 20% for 2025. And with that, I'll turn the call over to our CFO, Phil Mather.