TORONTO, Aug. 1, 2024 /CNW/ - (TSX:DFY) (in Canadian dollars except as otherwise noted) Highlights Gross written premium1 growth of 14.2% in Q2 2024, on robust personal auto activity driven by achieved rates and improving unit counts, as well as continued momentum in commercial insurance Combined ratio1 of 90.1% in Q2 2024 reflecting strong performance across all lines, bolstered by a low level of catastrophe losses and ongoing operational expense efficiencies Operating net income1 of $109.1 million in Q2 2024 compared to $65.1 million in Q2 2023, resulting in a 68% increase in operating EPS1 to $0.94; trailing 12-month operating ROE1 was 10.8% Financial position remained strong, with book value per share1 of $26.17, 11.7% higher than a year ago During the quarter, we announced that Sonnet will discontinue its auto insurance business in Alberta; these results will be reported as an exited line prospectively beginning in Q3 2024 Executive Messages "Our second quarter performance was well ahead of our key financial targets from both top- and bottom-line perspectives. Premiums increased to nearly $1.25 billion while our combined ratio of 90.1% benefitted from strong performance across the business, as well as favourable weather conditions. This resulted in a substantial underwriting income of $93.7 million which combined with healthy levels of net investment income and distribution income to generate operating earnings of $0.94 per share – significantly higher than a year ago. At the mid-point of the year, we are in an excellent position to continue building on our profitable growth momentum."– Rowan Saunders, President & CEO "The robust results we reported in the second quarter strengthened our operating ROE, reaching 10.8% over the past 12 months. Of note, the seasonally strong second quarter contribution from our broker distribution platform completes the first half of 2024 on track to deliver on our full year expectations for this business. Our performance also contributed to strong book value per share growth of 11.7% from a year ago. With financial capacity approaching $1.4 billion, we remain confident in our ability to advance our strategic objectives while delivering on our financial targets."– Philip Mather, EVP & CFO Consolidated Results  (in millions of dollars, except as otherwise noted) Q2 2024 Q2 2023 Change 2024 YTD 2023 YTD Change Insurance revenue 1,046.1 954.9 9.6 % 2,038.0 1,862.4 9.4 % Gross written premiums1 1,239.7 1,085.1 14.2 % 2,195.3 1,932.0 13.6 % Net underwriting revenue1 949.4 877.5 8.2 % 1,854.7 1,716.6 8.0 % Claims ratio1 60.0 % 63.7 % (3.7) pts 61.2 % 63.2 % (2.0) pts Expense ratio1 30.1 % 31.6 % (1.5) pts 30.8 % 32.1 % (1.3) pts Combined ratio1 90.1 % 95.3 % (5.2) pts 92.0 % 95.3 % (3.3) pts Insurance service result 166.2 132.2 34.0 289.8 226.1 63.7 Underwriting income1 93.7 41.2 52.5 148.5 80.7 67.8 Net investment income 49.9 42.8 7.1 98.1 83.8 14.3 Distribution income1 17.2 9.8 7.4 27.2 19.3 7.9 Net income attributable to common shareholders 103.8 71.6 32.2 209.0 172.5 36.5 Operating net income1 109.1 65.1 44.0 185.2 129.2 56.0 1 This is a supplementary financial measure, non-GAAP financial measure, or a non-GAAP ratio. Refer to Supplementary financial measures and non-GAAP financial measures and ratios in this news release, and Section 11 – Supplementary financial measures and non-GAAP financial measures and ratios in the Q2 2024 Management's Discussion and Analysis dated August 1, 2024 for further details, which is hereby incorporated by reference and is available on the Company's website at www.definityfinancial.com and on SEDAR+ at www.sedarplus.ca. Q2 2024 Q2 2023 Change 2024 YTD 2023 YTD Change Per share measures (in dollars) Diluted earnings per share 0.89 0.61 0.28 1.79 1.48 0.31 Operating earnings per share1 0.94 0.56 0.38 1.59 1.11 0.48 Book value per share1 26.17 23.42 2.75 Return on equity Return on equity ("ROE")1 13.6 % 15.5 % (1.9) pts Operating ROE1 10.8 % 9.9 % 0.9 pts Gross written premiums ("GWP") for Q2 2024 increased by $154.6 million or 14.2% compared to Q2 2023, with growth across all of our lines of business. Personal lines GWP was up 14.5%, driven by growth in our broker channel underpinned by strong auto rate increases and a return to unit count growth. Commercial lines GWP increased 13.8% as we continued to drive significant profitable growth in this line of business. Year to date, GWP increased by $263.3 million or 13.6% compared to 2023. Personal lines GWP increased 13.1% and commercial lines GWP increased 14.7%. Underwriting income for Q2 2024 was $93.7 million and the combined ratio was 90.1%, compared to underwriting income of $41.2 million and a combined ratio of 95.3% in Q2 2023. The combined ratio benefitted from a decrease in catastrophe losses, and improvements in the expense ratio and the core accident year claims ratio, partially offset by a decrease in favourable claims development. Year to date, our underwriting income increased by $67.8 million and led to a combined ratio of 92.0%, compared to 95.3% in 2023. Net investment income increased $7.1 million in Q2 2024 and $14.3 million year to date, due primarily to higher interest income driven by higher fixed income yields captured within the portfolio. Distribution income was $17.2 million in Q2 2024 and $27.2 million year to date, compared to $9.8 million in Q2 2023 and $19.3 million in 2023 year to date driven primarily by the contributions from acquisitions over the past year. Net Income and Operating Net Income Net income attributable to common shareholders was $103.8 million in Q2 2024 and $209.0 million year to date, compared to $71.6 million in Q2 2023 and $172.5 million in 2023 year to date. The increase was due primarily to an increase in operating net income. Operating net income was $109.1 million in Q2 2024 compared to $65.1 million in Q2 2023. The increase was due to higher underwriting, distribution, and net investment income. Year to date, operating net income was $185.2 million compared to $129.2 million in 2023. Operating ROE was 10.8% for the twelve-month period ended June 30, 2024 compared to 9.9% for the twelve-month period ended June 30, 2023. 1 This is a supplementary financial measure, non-GAAP financial measure, or a non-GAAP ratio. Refer to Supplementary financial measures and non-GAAP financial measures and ratios in this news release, and Section 11 – Supplementary financial measures and non-GAAP financial measures and ratios in the Q2 2024 Management's Discussion and Analysis dated August 1, 2024 for further details, which is hereby incorporated by reference and is available on the Company's website at www.definityfinancial.com and on SEDAR+ at www.sedarplus.ca. Line of Business Results (in millions of dollars, except as otherwise noted) Q2 2024 Q2 2023 Change 2024 YTD 2023 YTD Change Personal insurance Gross written premiums1 Auto 528.4 442.1 19.5 % 941.9 799.9 17.8 % Property 323.1 301.8 7.1 % 559.6 527.1 6.2 % Total 851.5 743.9 14.5 % 1,501.5 1,327.0 13.1 %