TD Bank Group expects to report approximately $36 million in catastrophe-related insurance claims, after reinsurance and before tax, in its third-quarter results.
According to the company, the losses will be recorded under the Bank’s Wealth Management & Insurance segment.
Catastrophe claims are defined by the bank as insurance losses from a single event that meet or exceed a $5 million internal threshold before reinsurance. These events typically include large-scale weather or natural disaster incidents. The threshold is subject to adjustment at the bank’s discretion.
The $36 million figure reflects the estimated pre-tax cost of the claims after reinsurance recoveries and, where applicable, includes reinsurance reinstatement premiums. The bank said the claims will be recognized as part of insurance service expenses, while reinsurance-related recoveries and costs will be reflected in other income (loss) on the bank’s consolidated income statement.
While TD did not disclose the specific events behind the claims, the expected losses come amid a year of elevated weather-related activity in Canada, with multiple severe hail and wildfire events affecting parts of Alberta and British Columbia.
The update signals the ongoing impact of climate-driven catastrophe risk on insurers and financial institutions with exposure to property and casualty lines. The bank’s disclosure also highlights the role of reinsurance in mitigating volatility, especially as insurers contend with rising claims severity.
TD’s insurance operations are part of a broader trend in Canada’s financial sector, where banks continue to expand their presence in life and general insurance markets. However, growing exposure to climate-related losses adds to the complexity of underwriting and risk management strategies.
The bank is expected to release its full third-quarter earnings later this month, where additional detail on claims drivers and segment performance may be provided.
