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Opinions Hap (Robert) Sneddon FCSI
Definity FinancialDFY.TOPAST TOP PICKAug 08, 2023
Stock price when the opinion was issued
As of Jun 19, 2026. Market Open.
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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
Likes it long term. Management expects price increases which sets it up for a great bottom line in 2024. Last week, they reported a massive 27% earnings beat which caught people's attention.