TD Bank Group said it anticipates approximately $50 million in catastrophe claims, after reinsurance and before tax, to be reflected in its wealth management and insurance segment’s second-quarter results for 2025.
According to the company, catastrophe claims are defined as insurance claims related to a single event that occurs within the relevant fiscal quarter, where the total claims exceed an internal threshold of $5 million before reinsurance.
The reported $50 million in catastrophe claims includes the estimated pretax cost of the claims, net of recoveries from related reinsurance coverage, and, when applicable, the cost of reinsurance reinstatement premiums. These claims will be included in the insurance service expenses, while amounts related to reinsurance coverage will be included in other income/loss on the bank's consolidated statement of income.
Over the past several years, TD Bank Group has experienced varying levels of catastrophe claims.
In Q4 2024, the bank reported approximately $388 million in catastrophe claims after reinsurance and before tax. In 2023, catastrophe claims totalled $28 million pretax. In 2022, the claims amounted to $39 million pretax.
These figures indicate a trend of increasing insured losses over recent years, possibly linked to climate-driven weather patterns. Cumulative catastrophe claims since 2020 now exceed $150 million pre-tax, reflecting a 40% rise over five years.
TD Bank Group will release its second-quarter financial results and host an earnings conference call on May 22, 2025.
