DEFINITY ANNOUNCES DIVIDEND REINVESTMENT PLAN

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR PUBLIC DISSEMINATION IN THE UNITED STATES./

WATERLOO, ON, Feb. 9, 2023 /CNW/ - Definity Financial Corporation (TSX: DFY) today announced that the company has implemented a Dividend Reinvestment Plan (the "DRIP"), effective as of the date of this press release. Participation in the DRIP is optional and will not affect shareholders' cash dividends, unless they elect to participate in the DRIP.

The DRIP will provide Definity's eligible shareholders with the opportunity to have all or a portion of the cash dividends declared on their common shares automatically reinvested into additional common shares on an ongoing basis until DRIP participation has been modified or terminated (the "Reinvestment Shares") of the Company. The benefits of enrolling in the DRIP include the:

• convenience of automatic reinvestment of dividends in Reinvestment Shares; and
• flexibility to enroll some or all common shares in the DRIP, providing the opportunity to reinvest all or a portion of dividends in Reinvestment Shares, while continuing to receive the remainder in cash.

Participants in the DRIP will, until further notice, acquire Reinvestment Shares with common shares acquired on the open market. Definity will also be entitled, at its discretion and in accordance with the DRIP, to fund the DRIP with common shares issued from treasury (a "Treasury Purchase") at a price equal to the volume weighted average price of the Company's common shares on the Toronto Stock Exchange during the five (5) trading days immediately preceding the dividend payment date (the "Average Market Price"), less a discount. Definity will have the discretion to determine the discount applicable to Treasury Purchases, provided that such discount shall not exceed 5% of Average Market Price.

Only future dividends declared by Definity will be eligible for reinvestment in the DRIP, commencing with the dividend to be paid on March 28, 2023, to shareholders on record as of March 15, 2023. To participate in the DRIP, registered shareholders must deliver a properly completed enrollment form to Computershare Trust Company of Canada (the "Agent") at a minimum five (5) business days before a dividend record date. Registered shareholders who wish to participate in the DRIP for the March 28, 2023 dividend must deliver a completed enrollment form to the Agent no later than 4:00 p.m. (EST time) on March 8, 2023.

Beneficial shareholders who wish to participate in the DRIP should contact their financial advisor, broker, investment dealer, bank, financial institution or other intermediary through which they hold common shares to inquire about the applicable enrolment deadline and to request enrolment in the DRIP and confirm what fees, if any, the nominee may charge to enroll in the DRIP on their behalf or whether the nominee's policies might result in any costs otherwise becoming payable by the beneficial shareholder. Commissions, service charges, brokerage fees and other administrative fees may be payable in connection with the termination of participation in the DRIP or the withdrawal or disposition of Reinvestment Shares.

Participation in the DRIP does not relieve shareholders of any liability for taxes that may be payable in respect of dividends that are reinvested in Reinvestment Shares. Shareholders should consult their tax advisors concerning the tax implications of their participation in the DRIP having regard to their particular circumstances.

Shareholders resident outside of Canada will not be eligible to participate in the DRIP.

This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction. This news release does not constitute an offer to sell or the solicitation to buy securities in the United States. The securities mentioned herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

The foregoing is a summary of the key attributes of the DRIP. A complete copy of the DRIP and the enrollment form will be available on the Agent's website at www.investorcentre.com. Shareholders should carefully read the complete text of the DRIP before making any decisions regarding their participation in the DRIP. For more information on how to enroll for registered shareholders or any other inquiries, contact the Agent at [phone] (North America) or [phone] (outside North America) or [email protected].

ABOUT DEFINITY FINANCIAL CORPORATION

Definity Financial Corporation ("Definity", which includes its subsidiaries where the context so requires) is one of the leading property and casualty insurers in Canada, with over $3.6 billion in gross written premiums in 2022 and over $2.3 billion in assets as at December 31, 2022.

SOURCE Definity Insurance Company

Media inquiries: Sarah Atwells, AVP, Corporate Affairs, (C) 226-753-1130, [email protected]; Investor inquiries: Dennis Westfall, Head, Investor Relations, (C) 416-435-5568, [email protected]