Definity Q1 earnings show Travelers integration producing results

Integration of Travelers Canada’s operations into Definity Financial Corp. is happening at a pace that’s “ahead of expectations,” Definity says in it’s 2026 Q1 earnings report.

Definity’s $3.3-billion transaction to acquire Travelers Canada closed on Jan. 2.

Policy conversions are underway, Definity reports, and $36 million “in run-rate expense synergies” have been captured during Q1. That means the company is ahead of schedule to reach a $100-million ‘synergies’ target.

“Our first quarter results reflect our new position as a Top-5 P&C insurer in Canada…and our conviction in the strategic benefits of the deal has only increased, underscored by a strong start on our synergy plan, achieving an annual run-rate of $36 million by quarter-end,” Definity president and CEO Rowan Saunders says in a May 7 press release.  

“While this initial pace of synergy capture will moderate, it puts us in an excellent position to deliver on our three-year, $100-million target. Our top-line growth of 35.4% is consistent with our expectations, providing a solid start towards our $6.5-billion, full-year premium target.

“Our overall profitability is also evident, delivering a combined ratio of 92.9% – a significant result, as we absorbed the initial impact of the acquisition ahead of realizing planned synergies. This early success across all fronts is a testament to our combined talent and aligned cultures, and it positions us for sustained outperformance.”

The 35.4% gross written premium (GWP) growth during the quarter reflects good onboarding and retention of the acquired business, along with organic growth that’s expected to meet a targeted $6.5 billion, the company says.

On the numbers, 2026 Q1 GWP rose $364.5 million (35.4%) against the comparable quarter in 2025. Personal lines GWP climbed 36.1% due to “acquired premiums as well as organic unit growth, and rate increases.” For commercial lines, GWP jumped 34%, again due to acquired premiums, “as well as pricing increases and ongoing market share gains in small business and specialty lines,” the release notes.

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GWP for personal lines jumped 36.1% in 2026 Q1, “bolstered by the acquired premiums, with strong growth in our broker channel,” the release says, adding GWP for the direct channel rose 2% in 2026 Q1. For personal property, GWP rose 37.3%. And for personal auto, it increased 35.3% in 2026 Q1 due primarily acquired premiums “and continued rate achievement.”

Definity’s overall combined ratio (which adds incurred losses and expenses and divides that number by earned premiums) hit 92.9% during Q1. The combined ratio for personal auto insurance was 97.5% in 2026 Q1, matching 97.5% in Q1 last year. For personal property, the 2026 Q1 combined ratio was 85% (against 94.1% in 2025 Q1), reflecting a drop in losses from natural catastrophes compared to the same period in 2025, as well as “a decrease in the core accident year claims ratio.”

For commercial lines, the 2026 Q1 combined ratio reached 90.5%. “This resulted from the inclusion of the acquired business and its associated expenses, which we expect will temporarily increase the claims and expense ratios prior to the benefit of future planned synergies,” the release notes.

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Meanwhile, underwriting income reached $100.1 million during first quarter.  

“The diversified earnings power of the combined business was clearly evident this quarter, with strong performance from all our profit drivers. For the first time in our history, we delivered over $100 million of underwriting income in a first quarter,” Definity Executive Vice President and Chief Financial Officer Philip Mather said in the release.

“Our broker distribution platform also showed excellent momentum, with broker operating income growing 24.9% year-over-year. Net investment income grew over 60% to $79.9 million, driven by the acquired assets and our proactive portfolio management.”

Phil Porado

Phil, an award-winning journalist with over 30 years of experience in financial topics, has been managing editor of Canadian Underwriter for more than three years.