TORONTO, May 9, 2024 /CNW/ - (TSX:DFY) (in Canadian dollars except as otherwise noted) Highlights Gross written premium1 growth accelerated to 12.8% in Q1 2024, driven by continued momentum in commercial insurance and the benefit of our proactive rate actions in a firm auto environment Combined ratio1 of 93.9% in Q1 2024 reflected the solid performance in personal property, the impact of higher earned rates in personal auto, and expense efficiencies Operating net income1 of $75.2 million in Q1 2024, compared to $63.4 million in Q1 2023, resulting in operating EPS1 of $0.65 per share; trailing 12-month operating ROE1 was 9.4% Net income attributable to common shareholders of $105.2 million drove book value per share1 to $25.40, 10.9% higher than a year ago Executive Messages "We ended the first quarter with book value per share of $25.40, up 10.9% from a year ago, as we continue to deliver value to shareholders. Our efforts to diversify the profitability of the business in recent years were reflected in our robust net investment income and ongoing contributions from the significant expansion of our broker distribution platform, both of which met our expectations for a first quarter. These results combined with solid underwriting income to generate an operating return on equity of 9.4% over the past 12 months. With substantial financial capacity, exceeding $1.3 billion, there is significant flexibility available to support the ongoing growth of our business."– Rowan Saunders, President & CEO "We ended the first quarter with book value per share of $25.40, up 10.9% from a year ago, as we continue to deliver value to shareholders. Our efforts to diversify the profitability of the business in recent years were reflected in the increasing earnings contributions from our national broker platform and investment portfolio, both of which met our expectations for a first quarter. These results combined with solid underwriting income to generate an operating return on equity of 9.4% over the past 12 months. With substantial financial capacity, exceeding $1.3 billion, there is significant flexibility available to support the ongoing growth of our business."– Philip Mather, EVP & CFO Consolidated Results  (in millions of dollars, except as otherwise noted) Q1 2024 Q1 2023 Change Insurance revenue 991.9 907.5 9.3 % Gross written premiums1 955.6 846.9 12.8 % Net underwriting revenue1 905.3 839.1 7.9 % Claims ratio1 62.6 % 62.6 %  - pts Expense ratio1 31.3 % 32.7 %   (1.4) pts Combined ratio1 93.9 % 95.3 %   (1.4) pts Insurance service result 123.6 93.9 29.7 Underwriting income1 54.8 39.5 15.3 Net investment income 48.2 41.0 7.2 Distribution income1 10.0 9.5 0.5 Net income attributable to common shareholders 105.2 100.9 4.3 Operating net income1 75.2 63.4 11.8 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 Q1 2024 Management's Discussion and Analysis dated May 9, 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.   Q1 2024 Q1 2023 Change Per share measures (in dollars) Diluted earnings per share 0.90 0.87 0.03 Operating earnings per share1 0.65 0.54 0.11 Book value per share1 25.40 22.90 2.50 Return on equity Return on equity ("ROE")1 12.7 % 9.5 % 3.2 pts Operating ROE1 9.4 % 9.3 % 0.1 pts Gross written premiums ("GWP") for Q1 2024 increased by $108.7 million or 12.8% compared to Q1 2023, with growth across all of our lines of business. Personal lines GWP was up 11.5%, driven by growth in our broker channel fuelled by strong auto rate increases. Commercial lines GWP increased 15.8% as we continued to drive significant profitable growth in this line of business. Underwriting income for Q1 2024 was $54.8 million and the combined ratio was 93.9%, compared to underwriting income of $39.5 million and a combined ratio of 95.3% in Q1 2023. The combined ratio reflects improvements in the expense ratio and the core accident year claims ratio, and higher favourable prior year claims development. These improvements were partially offset by an increase in catastrophe losses. Net investment income increased $7.2 million in Q1 2024 due primarily to higher interest income driven by higher fixed income yields captured within the portfolio. Distribution income of $10.0 million in Q1 2024 increased slightly from $9.5 million in Q1 2023. In Q1 2023, we benefitted from an unusually high true-up of contingent profit commission accruals to payments received, which contributed almost half of the distribution income in that quarter. Excluding this impact, the Q1 2024 distribution income effectively doubled driven by the contributions from acquisitions completed since May 2023. Net Income and Operating Net Income Net income attributable to common shareholders was $105.2 million in Q1 compared to $100.9 million in Q1 2023. The increase was due primarily to increases in underwriting income, net investment income, and mark-to-market gains on our equity portfolio, which were partially offset by mark-to-market losses on our fixed income portfolio. Operating net income was $75.2 million in Q1 2024 compared to $63.4 million in Q1 2023. The increase was due to higher underwriting income and net investment income. Operating ROE was 9.4% for the twelve-month period ended March 31, 2024 compared to 9.3% for the twelve-month period ended March 31, 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 Q1 2024 Management's Discussion and Analysis dated May 9, 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) Q1 2024 Q1 2023 Change Personal insurance Gross written premiums1 Auto 413.5 357.8 15.6 % Property 236.5 225.3 5.0 % Total 650.0 583.1 11.5 % Combined ratio1 Auto 97.1 %