Summer Sale
50% off Premium Yearly
Opinions Stephen Takacsy, B. Eng, MBA
Definity FinancialDFY.TOTOP PICKMar 27, 2023
Stock price when the opinion was issued
As of Jun 19, 2026. Market Open.
You might be interested:
;fill-opacity:1;'/%3e%3cpath%20d='M31%2018.6001V30H8V18.6001L14.1334%2022.4334L19.4999%2014L24.8669%2022.4334L31%2018.6001Z'%20fill='%23EE5432'%20style='fill:%23EE5432;fill:color(display-p3%200.9340%200.3310%200.1956);fill-opacity:1;'/%3e%3c/svg%3e){kind=small}
Premium contentDFY is the financial holding company for one of the leading property and casualty insurers in Canada, with nearly $4 billion in annual gross premiums. They are completing compliance approvals to reduce its leverage restrictions, allowing for a $550 million increase in their credit facility to grow their business. It trades at 14x earnings, under 2x book and supports an 18% ROE. We recommend placing a stop-loss at $31, looking to achieve $44 -- upside potential of over 18%. Yield 1.4%
(Analysts’ price target is $43.55)
Rising cost of insurance due to inflation - hard on business margins.
Long term, still believes in business.
Insurance a required product for all people.
Largest provider of pet insurance.
Gavin Graham
Although not well known it is Canada's 7th biggest property/casualty insurance company. 70% is personal insurance and 30% is commercial. Its IPO was 18 months ago on the TSX and it is now trading at 1 1/2 times BV. It can grow organically and can now leverage its balance sheet to make acquisitions. After a nice run along with a recent pull-back, he is buying more. It is profitable and growing faster than Intact Insurance, the gold standard in Canada.
Buy 7 Hold 4 Sell 0