TD Bank Group expects to record about $7 million in catastrophe-related insurance claims, after reinsurance and before tax, in its Wealth Management & Insurance segment's first-quarter results.
The company is set to release its Q1 financial results on Feb. 26.
The bank defines catastrophe claims as insurance claims arising from any single event in the relevant fiscal quarter where aggregate claims are equal to or greater than an internal threshold of $5 million before reinsurance. TD said this internal threshold may be adjusted from time to time.
The total catastrophe figure represents the estimated pre‑tax cost of claims net of recoveries from related reinsurance coverage and, where applicable, includes the cost of reinsurance reinstatement premiums. Catastrophe claim amounts are recorded in Insurance service expenses, while related reinsurance recoveries are reflected in Other income (loss) on the Bank’s consolidated statement of income.
Smaller than 2025 cat hit, but part of an ongoing trend
The latest estimate follows a heavier quarter of catastrophe activity in 2025. In its third quarter last year, TD said it expected to report approximately $36 million in catastrophe‑related insurance claims, after reinsurance and before tax, against a backdrop of severe hail and wildfire events in parts of Alberta and British Columbia.
By contrast, the $7 million now guided for the first quarter points to a lower level of cat activity, but still exceeds the Bank’s $5 million internal threshold and adds to a recent run of quarters in which that threshold has been crossed. While the amount is not expected to be significant at the consolidated bank level, it remains a notable driver of quarterly variability within the Wealth Management & Insurance segment.
Severe weather and reinsurance context
TD did not disclose the specific events behind the latest estimate. The update comes amid continued severe‑weather volatility in Canada, with insurers and bank‑owned carriers reporting a mix of large wildfire and hail losses alongside more frequent mid‑sized storm and flooding events.
That backdrop has contributed to higher catastrophe reinsurance costs and tighter terms for writers with property exposure, prompting closer attention to catastrophe appetites, retentions and portfolio mix.
TD’s disclosure is the latest in a series of cat‑related updates from major Canadian market participants, underlining that property‑linked business within diversified financial groups remains exposed to the same climate‑driven loss trends affecting standalone P&C insurers.
