P&C Insurance Q2/26 Preview: Reasonable Valuations, Improving Top Line

Research evidence excerpt

P&C Insurance Q2/26 Preview: Reasonable Valuations, Improving Top Line

TD SECURITIES INC. - CANADA INDUSTRY UPDATE

July 14, 2026

■Financial Services - Insurance P&C Insurance Q2/26 Preview: Reasonable

Valuations, Improving Top Line

Mario Mendonca, CFA, CA^ THE TD COWEN INSIGHT

416 308 2361

IFC reports Q2/26 on July 28, DFY on July 30, and TSU on Aug 6. Themes for Q2/26: a) strong

mario.mendonca@tdsecurities.com

underlying conditions (esp. personal lines) but moderating commercial topline, b) elevated

Masa Song^ CAT quarter, c) strong U.S. growth. We see a good risk-reward setup given low valuations and

416 982 5452 improving topline. Our estimates are in line with cons. for TSU; above for DFY; below for IFC

masa.song@tdsecurities.com

(reflects CATs announcement).

Fernando Torrealba Tesi, CFA^

416 983 2664 Reasonable valuation multiples and better top-line momentum provide favourable setup:

fernando.torrealbatesi@tdsecurities.com Although P&C stocks have performed better recently, they still trade at lower multiples

vs. long-term averages. We expect continued top-line growth and limited drag from large

Price Target Changes

commercial property softness to support P&C stocks from here. Longer term, we see potential

DFY-T C$89.00 (Prior C$86.00)

catalysts in: 1) better-than-expected synergies (DFY-TRV), 2) potential M&A (IFC), and 3) U.S.

platform growth (TSU).

P&C Outlook: Personal lines remain firm as the industry continues to increase rates in auto

and property to cope with structurally higher claims costs - we do not believe IFC and DFY are

over-earning. Large commercial property should remain soft until profit erosion drives rate

increases (IFC and DFY have limited exposure). For DFY, the pace of expense synergies from