TSE:DFY

Definity Financial (DFY.TO)

78.07
+0.45 (0.58%)
as of Jul 17, 2026, 3:04:04 pm Market Open.
58 watching
0
Investor Insights
star iconJul 17, 2026, 12:00 am

This 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%.

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Consensus
Positive
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Valuation
Undervalued
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TOP PICK

 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 

TOP PICK

Up 30% in one year and the biggest IPO of 2021. Their combined ratio went from 110% to 90%, from losing to making money. Pays a 1.3% dividend. Also they have a pet insurance business, a lucrative space.

(Analysts’ price target is $42.95)
BUY ON WEAKNESS

Well managed company that will perform well.
Higher interest rates will benefit company.
Does not own shares, but thinks is a good business.
Hold for the long term and dividend yield. 

BUY
Small, junior version of IFC, which he does own. Prefers IFC with its scale, breadth, and geographic diversification. P&C has been in the sweet spot. Likes it. If he were going to own another, this would probably be the one.
WAIT
They added it to the portfolio earlier this year. It is in the property and casualty insurance business and is inexpensive compared to Intact Financial, its main peer. It has great pricing power and good growth. Wait for a pullback.
BUY
Stock's doing well. Trading at a discount to IFC. Reasonable valuation. P&C is a great business. Can see them growing and acquiring. Buy while it's not yet on people's radar.
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