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TSE:DFY
Definity Financial (DFY.TO)
Financials 
Technical Analysis 
Aug 29, 2026, 12:00 amThis summary was created by AI, based on 4 opinions in the last 12 months.
Definity Financial (DFY-T) has garnered attention for its solid performance and strategic moves, especially following its integration with Travelers Insurance, which has yielded better-than-expected synergies and an improved combined ratio. The company has avoided significant catastrophic losses recently, contributing to a more favorable outlook compared to market expectations. Analysts highlight the attractive pricing of the stock, with a current P/E ratio of around 14x for 2027, and project strong growth rates in the mid-teens relative to ROEs over the next three years. With its focus on property and casualty insurance and the ongoing benefits from AI efficiencies, experts suggest that now may be an opportune time to invest, particularly given the potential for further gains if the stock price dips. Overall, the experts view this stock as a blend of growth, value, and decent dividend potential.
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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.
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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.