Definity Investment and Insurance Strategy Overview
SIGNIFICANT FINANCIAL FLEXIBILITY
UNLEVERED BALANCE SHEET WITH SIGNIFICANT EXCESS CAPITAL
We have almost $700 million in financial capacity (1) to fund our strategic growth
initiatives for the coming years (2)
Credit facility set to automatically increase from $150M to $700M upon the continuance
of Definity under the Canada Business Corporations Act (the "Continuance"), which is
subject to government approval (2)
Definity Insurance Company credit rating: "A stable outlook" from DBRS, financial
strength rating: "A- (Excellent) stable outlook" from AM Best
• Future optimization of capital structure expected to support improvements in Operating
ROE(1) over time(4)
FINANCIAL CAPACITY(1)
Consolidated Excess Capital at 190% MCT:
- Definity Insurance Company
ICA (2) CBCA (3)
$78
$78
Definity Financial Corporation
$287
$287
Total Excess Capital
$365
$365
Leverage Capacity (1,3)
$221
$816
Financial Capacity (1) as at Q3-2023
$586
$1,181
STRATEGIC FOCUS ON CONSISTENTLY DEMONSTRATING DISCIPLINED FINANCIAL MANAGEMENT
Organic
Growth
Common
Shareholder
Dividends (5)
Inorganic
Growth
Share
Buybacks
22
22
Note: Figures in millions, unless otherwise noted.
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 advisory and Section 12 - Supplementary financial measures and non-GAAP financial
measures and ratios in the Q3-2023 MD&A for further details.
2. Definity is subject to leverage restrictions under the ICA, which provide that its total debt cannot exceed 2.5% of its total assets.
3.
4.
Assumes Definity proceeds with the Continuance and establishes financial leverage levels at 20% debt and 5% preferred or hybrids. The Continuance is subject to governmental approval. Approximately $142.9 million (December 31, 2022: $108.7 million) of the 2.5% (December
31, 2022: 2.0%) debt limit under the ICA was utilized as at September 30, 2023, including debt outstanding of $114.3 million (December 31, 2022: $39.1 million) which has reduced the amount of leverage capacity.
Expectation subject to certain factors and assumptions. See "Advisory Regarding Forward-Looking Information".
5. Declaration of dividends is subject to Board discretion.
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