TSE:DFY
Definity Financial (DFY.TO)
Financials 
Technical Analysis 
Jun 3, 2026, 12:00 amThis summary was created by AI, based on 4 opinions in the last 12 months.
Definity Financial (DFY-T) has garnered positive reviews, emphasizing its position in the P&C insurance sector and the benefits of synergies from recent acquisitions, particularly Travelers Canada. Analysts note a solid performance in underwriting and an optimistic outlook for mid-teen return on equities (ROEs) over the next three years, with the potential for growth driven by artificial intelligence efficiencies. With a current price-to-earnings (PE) ratio of 14x and projected growth of 26%, the stock appears to be an attractive buy despite being considered slightly overvalued at 19.4x PE by some experts. The company is also praised for its decent dividend yield of 1.32%. Investment strategies suggest starting a position now and potentially increasing it if the stock price drops by 15-20%. Overall, the consensus indicates a good opportunity for new investments in a company focused on efficiency and growth.
;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 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
'%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)
Does not owns shares. However, likes property and casualty insurance space. Canadian company with online business model that is good for reducing costs. Will take time to see if business is consolidated. If already own shares - would recommend holding.