Definity Financial Corporation fell for the fourth quarter in a row.
The holding company, which i.a Definite insurance [auparavant appelée Economical, Compagnie Mutuelle d’Assurance, NDLR], Sonnetor Pet linereports net income of $41.1 million (M$) in the third quarter of 2022 compared to $53.3 million in the third quarter of 2021.
This result decreased by 22.9% or $12.2 million “primarily due to lower net insurance income, partially offset by higher net investment income”.
Thus, Definity reports net insurance income of $27.9 million in the third quarter of 2022, compared to $55.1 million in the third quarter of 2021. This is a decrease of 49.4% or $27.2 million.
“Our underwriting results were strong despite the impact of catastrophe claims, including Hurricane Fiona in the Atlantic region in September,” the company said.
Definity had a combined ratio of 96.6% in the third quarter of 2022 compared to 92.4% in the third quarter of 2021. That is a deterioration of 4.2 points.
“Catastrophe claims impacted the combined ratio by 5.7 percentage points compared to 5.1 percentage points in the same quarter last year,” Definity said. “The increase in the combined ratio was driven by an increase in the casualty loss ratio and higher catastrophe losses, partially offset by the higher level of favorable loss development in prior years,” the company said.
In contrast, Definity reports net investment-related income of $36 million in the third quarter of 2022, compared to $24.6 million in the third quarter of 2021.
This increase of 46.3% or $11.4 million was “principally due to higher returns on fixed income securities as well as investment of funds attributable to underwriting results and business growth and the net proceeds to the Company from the initial public offering (IPO) and related transactions”.
Gross written premiums (gross written premiums) of Definity reached $944.1 million. in the third quarter of 2022 compared to $851.5 million. in the third quarter of 2021.
This is an increase of 10.9% or $92.6 million, “driven by the success of our strategic expansion initiatives across our businesses as well as firm market conditions,” Definition says.
In detail, we note that:
- In commercial insurance: gross written premiums reached $257.3 million in the third quarter of 2022 compared to $220.5 million in the third quarter of 2021. The increase is 16.7% or $36.8 million, “ as we have continued focus on profitable growth in this sector”, says Definity.
- In personal insurance: gross premiums reached $686.8 million in the third quarter of 2022 compared to $631 million in the third quarter of 2021. The increase was 8.8% or $55.8 million, “due to increases in business written directly or through brokers”.