TD Bank Group has updated investors on catastrophe losses in its insurance operations ahead of second‑quarter fiscal 2026 results, confirming that it expects no catastrophe claims, net of reinsurance, for the period.
The disclosure, posted on TD’s investor relations site, covers catastrophe claims in the wealth management & insurance segment and provides comparative figures back to the first quarter of 2025.
According to the bank, catastrophe claims, net of reinsurance, were $0 in the second quarter of 2026, following $7 million in the first quarter of 2026.
In the prior fiscal year, net catastrophe claims were $15 million in the fourth quarter of 2025, $36 million in the third quarter, $50 million in the second quarter and $0 in the first quarter. The latest quarter therefore marks a return to zero catastrophe losses after four consecutive quarters with net cat claims, peaking at $50 million in the second quarter of 2025 and then moderating to $7 million in the first quarter of 2026.
TD defines catastrophe claims as insurance claims that relate to any single event occurring in the relevant fiscal quarter where aggregate insurance claims reach or exceed an internal threshold of C$5 million before reinsurance.
The bank noted that this internal threshold may change from time to time. The reported amounts reflect the estimated pre‑tax cost of those claims net of recoveries from related reinsurance coverage and, where applicable, include the cost of any reinsurance reinstatement premiums.
For accounting purposes, the total catastrophe claim amount is included in Insurance service expenses, while amounts related to reinsurance coverage are recorded in Other income (loss) on the bank’s consolidated statement of income.
The data points to a materially quieter catastrophe quarter for TD’s insurance book following a period of elevated Canadian weather‑related losses that affected several bancassurance players. The reduced catastrophe burden is likely to be supportive for underlying profitability in the Wealth Management & Insurance segment, all else being equal, and gives underwriters and reinsurance partners additional insight into how TD’s catastrophe risk is performing against its retention and reinsurance structure.
Canada’s major banks with P&C and life insurance arms have all faced increased scrutiny of insurance earnings volatility in recent years, driven by wildfires, floods and severe storms.
TD’s decision to highlight catastrophe experience ahead of the full quarterly release reflects a broader move toward more granular disclosure around insurance risk within diversified financial groups, and provides investors with clearer visibility on the contribution of large loss events to quarterly results.
TD said it will release its second‑quarter fiscal 2026 financial results on May 28, 2026.
Management is expected to provide further detail on the catastrophe loss experience, any notable events in the quarter and the implications for pricing, underwriting appetite and reinsurance purchasing for the upcoming renewal cycle.
