Mr. Rowan Saunders reports

DEFINITY RELEASES ESTIMATE OF FINANCIAL IMPACT FROM CATASTROPHE LOSSES IN JULY AND AUGUST

Definity Financial Corp. today released its estimate of the financial impact to Definity arising from catastrophe losses in July and August, 2026 (1). Notable events in July included severe rainstorms that led to flooding in Ontario and Alberta, while August experienced flooding in Ontario and wildfires in British Columbia.

"While these events have had a meaningful impact, they also demonstrate the importance of being prepared to support customers when they need us most," said Rowan Saunders, president and chief executive officer, Definity. "Thanks to the strength of our business, our investments in catastrophe readiness and the dedication of our people, we have been there for customers throughout these events while continuing to deliver on our promise of making insurance better."

Definity estimates a negative impact on underwriting income for July and August of approximately $130-million, net of reinsurance recoveries, representing 79 cents per common share net of taxes and reinsurance.

This assessment is based on information received to date from customers, as well as analysis of exposures. The summer catastrophe season remains active and additional events may occur. Although year-to-date catastrophe losses are largely in line with the company's expectations, the company's Q3 (third quarter) 2026 distinct catastrophe losses so far are trending meaningfully above the full-quarter market consensus expectation of $93-million. The company will provide a finalized update for the full quarter during the first half of October.

About Definity Financial Corp.

Definity Financial is one of the leading property and casualty insurers in Canada, with approximately $6.4-billion in gross written premiums (pro forma with the Travelers Transaction (2)) for the 12 months ended June 30, 2026, and $4.2-billion in equity attributable to common shareholders as at June 30, 2026.

Non-GAAP (generally accepted accounting principles) measures

This news release contains a measure of the negative impact on underwriting income net of reinsurance recoveries, which does not have any standardized meaning prescribed by GAAP. This non-GAAP measure may be used by management and financial analysts to assess the company's performance but may not be comparable with any similar measures presented by other companies. Accordingly, this measure should not be considered in isolation or as a substitute for analysis of the company's financial information reported under GAAP.

(1) The company considers losses to be catastrophe losses if they are the result of either: (i) an event causing gross losses in excess of $2-million and generally greater than 100 claims; or (ii) a single claim with a gross loss in excess of $5-million.

(2) Please refer to the company's May 27, 2025, news release announcing its agreement with St. Paul Fire and Marine Insurance Company, and Travelers Casualty and Surety Company, to acquire Travelers' Canadian P&C insurance operations, excluding its Canadian surety business and certain select business lines retained by Travelers, for cash consideration of approximately $3.3-billion.

We seek Safe Harbor.