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CIBC Previews Definity Financial's Q1, Says Travelers Acquisition Will Have "Significant" Impact

-- Definity Financial's acquisition of Travelers Canada closed at the beginning of the quarter and CIBC Capital Markets expects it will have a significant impact on the results.

Definity closed the Travelers Canada acquisition on Jan. 2. Premiums will jump by 35% and the acquisition is expected to be dilutive to margins in the short-term. First quarter results will provide the first look at the financial impact of the acquisition, excluding cost synergies, analyst Paul Holden writes.

Holden, who is maintaining a neutral rating and $74.00 price target on the stock, expects Definity to report solid results. His first quarter operating earnings estimate of $0.88 is unchanged and compares with consensus of $0.87.

Success for Definity in 2026 will largely be tied to the Travelers integration, he adds.

Price: $66.93, Change: $-1.07, Percent Change: -1.57%

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