Life Insurance Q2/26 Preview: Strong Equity Markets Support AUM/Fees Growth

Research evidence excerpt

Life Insurance Q2/26 Preview: Strong Equity Markets Support AUM/Fees Growth

TD SECURITIES INC. - CANADA INDUSTRY UPDATE

July 21, 2026

■Financial Services - Insurance Life Insurance Q2/26 Preview: Strong Equity

Markets Support AUM/Fees Growth

Mario Mendonca, CFA, CA^ THE TD COWEN INSIGHT

416 308 2361

We expect a good quarter from the insurers. We expect a weaker C$, strong equity markets,

mario.mendonca@tdsecurities.com

normalizing insurance experience and strong (albeit moderating) Asia insurance sales to offset

Masa Song^ weak AUM flows (SLF/MFC) and continuing non-core charges (e.g. ALDA, investment R/E).

416 982 5452 From a capital perspective, SLF resumed buybacks, GWO slowed their buyback pace (but

masa.song@tdsecurities.com

remains high), and MFC & IAG accelerated.

Fernando Torrealba Tesi, CFA^

416 983 2664 Canada's life insurers report Q2/26 results on July 28 and Aug 4-6. We expect strong equity

fernando.torrealbatesi@tdsecurities.com markets, improving insurance experience, and continued strength in Asian insurance sales to

offset the impact of net outflows and support earnings growth in Q2/26. We expect modestly

Price Target Changes

higher net investment income (including earnings on surplus), driven by higher investment

GWO-T C$98.00 (Prior C$80.00)

assets and surplus balances. Additionally, a lower share count (3% y/y decline across the

IAG-T C$214.00 (Prior C$190.00)

group) supports adjusted EPS growth of 8% and progress toward ROE targets.MFC-T C$65.00 (Prior C$58.00)

SLF-T C$121.00 (Prior C$107.00)

US segment remains a challenge for SLF. While we expect that the repricing actions in

recent quarters should be enough to support the Stop Loss business, we believe we could see

continued (albeit much smaller) experience charges emerge this quarter.