TD Bank Group's insurance unit is heading into its third-quarter earnings report with its heaviest catastrophe bill in over a year, disclosing $117 million in catastrophe claims, net of reinsurance, for the fiscal quarter ended July 31.
TD's insurance segment sits inside its broader Wealth Management and Insurance division, which includes TD Insurance's home, auto and business lines.
The figure marks a sharp reversal from the two quarters that preceded it. TD reported zero catastrophe claims in its fiscal second quarter and just $7 million in its first quarter, following $15 million in the final quarter of fiscal 2025. Measured against the same quarter a year earlier, when TD disclosed $36 million in catastrophe claims tied to hail and wildfire activity in Alberta and British Columbia, this year's figure is more than three times higher.
TD does not disclose the specific events behind its catastrophe figure, and this disclosure is no exception. But the timing lines up closely with a run of severe weather that battered the Prairies through the spring and summer. A pair of storms that struck Manitoba and Saskatchewan on June 9 and 10 alone caused more than $840 million in industry-wide insured losses, according to estimates from Catastrophe Indices and Quantification Inc. (CatIQ), driven by tornadoes, hail, high winds and flash flooding.
That event was one of five catastrophic weather events to hit the two provinces so far in 2026, with additional storm and flooding losses from late June and early July still being tallied separately.
Wildfire appears to be a smaller factor in TD's case this year than in past seasons. Although Canada's year-to-date burned area has topped historical averages, most of that activity has been concentrated in remote parts of northwestern Ontario and northern Quebec, where insurance penetration is comparatively low, rather than in the higher-value, wildfire-exposed regions of British Columbia and Alberta that drove losses in prior years.
For brokers placing property and casualty business in Manitoba and Saskatchewan specifically, this is the second recent signal from the disclosure that renewal pressure in those provinces is building. Regional insured losses in Saskatchewan and Manitoba have climbed roughly 140% on a per-capita basis over five years, a trend that points to firmer terms at renewal rather than a one-off spike tied to a single storm season.
TD defines a catastrophe claim as one tied to a single event in a given fiscal quarter where aggregate claims reach or exceed an internal threshold of $5 million before reinsurance, a threshold the bank says it may adjust over time. The disclosed figure reflects the estimated pre-tax cost of those claims net of reinsurance recoveries, including any reinsurance reinstatement premiums where applicable, and flows through insurance service expenses on TD's consolidated statement of income.
TD has published this kind of pre-announcement ahead of earnings for several consecutive quarters, giving investors and brokers alike an early read on catastrophe exposure before the full results land.
That pattern continues here. TD will report its full third-quarter fiscal 2026 results, including net income for the Wealth Management and Insurance segment, on August 27.
At the segment level, $117 million is unlikely to move the needle materially given TD's scale. Wealth Management and Insurance posted $703 million in net income in the same quarter last year. But the figure adds to a broader industry pattern this year of elevated catastrophe frequency across Canada, and reinforces that reinsurance structuring, rather than any single event, remains the main buffer keeping quarterly catastrophe swings from hitting insurers' bottom lines harder.
