TSE:DFY
Definity Financial (DFY.TO)
Financials 
Technical Analysis 
Jul 17, 2026, 12:00 amThis summary was created by AI, based on 3 opinions in the last 12 months.
Definity Financial (DFY-T) is currently viewed as a solid investment opportunity with a notable ability in the P&C insurance sector, distinguished from life insurance companies like MFC or SLF. Analysts highlight its advantageous position, having demonstrated solid underwriting performance and financial synergies, particularly benefiting from its integration with Travelers Canada. The company is anticipated to deliver mid-teen return on equity (ROE) over the next three years, buoyed by the efficiencies brought by artificial intelligence technologies. The stock is reasonably priced at a forward 14x PE ratio based on projections for 2027, combined with a 26% growth outlook, making it appealing for investors looking for growth, value, and decent dividends, which currently stands at 1.32%. While some experts caution that it may seem slightly expensive at 19.4x PE historically, it’s suggested to start a position now and consider increasing it if there’s a dip of 15-20%.
;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 contentOur PAST TOP PICK with DFY is progressing well. To remain disciplined, we recommend trailing up the stop (from $37) to $41 at this time. If triggered, this would result in a net investment gain of 16%, including the previous recommendation to cover half the position.
Very strong results recently. Premiums more than covered expenses. Raised dividend by 16%. Now allowed to lever balance sheet to make acquisitions. Growing faster than IFC, which is #1 in Canada. Trades at big discount (1.8x book value) to IFC (2.8x). Really good upside.
Swiss Reinsurance just purchased 10% of company. Possible creeping takeover? DFY is either going to make acquisitions or be acquired. Good time to buy.
Premium contentPremium 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'%20fill='%23ffffff'%3e%3cg%20id='Pager'%20transform='translate(423.000000,%201755.000000)'%3e%3cpath%20d='M243.295367,17.286474%20C243.68919,16.9045087%20244.327703,16.9045087%20244.721525,17.286474%20L249,21.4361302%20L253.278475,17.286474%20C253.672297,16.9045087%20254.31081,16.9045087%20254.704633,17.286474%20C255.098456,17.6684393%20255.098456,18.2877274%20254.704633,18.6696927%20L249.35654,23.856763%20C249.159628,24.0477457%20248.840372,24.0477457%20248.64346,23.856763%20L243.295367,18.6696927%20C242.901544,18.2877274%20242.901544,17.6684393%20243.295367,17.286474%20Z'%20id='Path'%20transform='translate(249.000000,%2020.500000)%20scale(-1,%201)%20rotate(-90.000000)%20translate(-249.000000,%20-20.500000)%20'%3e%3c/path%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
'%20fill='%23ffffff'%3e%3cg%20id='Pager'%20transform='translate(423.000000,%201755.000000)'%3e%3cpath%20d='M243.295367,17.286474%20C243.68919,16.9045087%20244.327703,16.9045087%20244.721525,17.286474%20L249,21.4361302%20L253.278475,17.286474%20C253.672297,16.9045087%20254.31081,16.9045087%20254.704633,17.286474%20C255.098456,17.6684393%20255.098456,18.2877274%20254.704633,18.6696927%20L249.35654,23.856763%20C249.159628,24.0477457%20248.840372,24.0477457%20248.64346,23.856763%20L243.295367,18.6696927%20C242.901544,18.2877274%20242.901544,17.6684393%20243.295367,17.286474%20Z'%20id='Path'%20transform='translate(249.000000,%2020.500000)%20rotate(-90.000000)%20translate(-249.000000,%20-20.500000)%20'%3e%3c/path%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
P&C business. Making a ton of money. Great business, good valuation. Will probably be acquired at some point. His insurance play remains BRK.B.