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Canadian (TSX) Insurance Industry Analysis

UpdatedNov 28, 2021
DataAggregated Company Financials
Companies14
  • 7D-2.2%
  • 3M-1.6%
  • 1Y19.9%
  • YTD19.6%

Over the last 7 days, the Insurance industry has dropped 2.2%, driven by pullbacks in Sun Life Financial and Manulife Financial of 2.8% and 2.1%, respectively. This takes the industry's 12 month performance to a gain of 20%.

Industry Valuation and Performance

Has the Canadian Insurance Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPE
Wed, 01 Dec 2021CA$212.2bCA$293.1bCA$25.0b9.7x
Fri, 29 Oct 2021CA$208.8bCA$276.3bCA$24.1b10.6x
Sun, 26 Sep 2021CA$206.3bCA$277.3bCA$24.2b10.7x
Tue, 24 Aug 2021CA$211.8bCA$276.5bCA$24.1b10.9x
Wed, 30 Jun 2021CA$203.1bCA$276.5bCA$24.1b10.2x
Sat, 03 Apr 2021CA$192.7bCA$283.4bCA$20.5b10x
Tue, 05 Jan 2021CA$169.1bCA$306.1bCA$15.4b9.7x
Fri, 09 Oct 2020CA$149.7bCA$280.6bCA$13.3b9.7x
Thu, 02 Jul 2020CA$142.3bCA$290.5bCA$11.3b14.1x
Sun, 05 Apr 2020CA$136.9bCA$244.2bCA$10.9b13.4x
Wed, 08 Jan 2020CA$180.6bCA$271.1bCA$16.2b13x
Tue, 01 Oct 2019CA$169.9bCA$268.1bCA$13.7b14.1x
Fri, 05 Jul 2019CA$163.3bCA$242.0bCA$14.2b12.3x
Mon, 08 Apr 2019CA$164.3bCA$243.0bCA$14.1b12.4x
Thu, 10 Jan 2019CA$143.5bCA$204.3bCA$13.2b11.1x
PE Ratio

11.2x

Total Market Cap: CA$156.9bTotal Earnings: CA$12.5bTotal Revenue: CA$215.7b0%0%0%3 Year10 Year
201920202021

Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 11.9x. However, future earnings are expected to decline by 1.1% which could potentially cause the PE ratio to fall below its historical average.

Past Earnings Growth: The earnings for companies in the Insurance industry have grown 26% per year over the last three years, and revenues for these companies have grown 11% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the Canadian Insurance industry?

Reinsurance16.22%
Insurance Brokers10.81%
General Insurance-1.44%
Property and Casualty Insurance-2.25%
Life and Health Insurance-2.26%

Industry PE: Investors are most optimistic about the Property and Casualty Insurance industry even though it's trading below its 3-year average PE ratio of 35.7x. However analysts are expecting annual earnings growth of 10%, which is lower than the prior year's growth of 118% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the General Insurance industry, which is trading below its 3-year average of 20.1x.

Forecasted Growth: Analysts are most optimistic on the Property and Casualty Insurance industry, expecting annual earnings growth of 10% over the next 5 years. Meanwhile, the General Insurance industry is expected to see its earnings decline by 37% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

Company7D1YValuation
DFY Definity Financial4.0%+CA$122.8mn/aPE13.4x
TIL Till Capital16.2%+CA$3.1m112.7%PE3.9x
NXG NexgenRx2.7%+CA$703.4k55.1%PE13.7x
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SLF

CA$67.83

Sun Life Financial

7D

-2.9%

1Y

18.8%