TD Insurance parent suffers net loss in second quarter of 2024
TD Insurance parent suffers net loss in second quarter of 2024 | Insurance Business Canada
Insurance News
TD Insurance parent suffers net loss in second quarter of 2024
However, its wealth & insurance division enjoyed record revenue
Insurance News
By
Terry Gangcuangco
TD Bank Group (TD), the parent company of TD Canada Trust, TD Auto Finance, TD Wealth, TD Insurance, TD Securities, and TD Bank in the US, has published its financial results for the three months ended July 31 (Q3 2024).
The group suffered a net loss worth $181 million in the quarter, a plunge from last year’s net income of $2.88 billion. The reported results include the impact of the US$2.60 billion provision for investigations related to the company’s anti-money laundering program.
Zeroing in on the group’s insurance business, TD noted: “Wealth Management and Insurance delivered record revenue while net income reflects impact from severe weather events. Wealth Management and Insurance net income was $430 million, relatively flat compared with the third quarter last year.
“Driven by strong business fundamentals, Wealth Management and Insurance delivered record revenues of $3.35 billion reflecting higher insurance premiums, asset growth, higher deposit margins, and increased trades per day in the Direct Investing business.”
TD Insurance reported higher claims costs due to severe weather events in the Greater Toronto Area and wildfires in Alberta, in addition to increased claims severity.
TD said: “Wealth Management and Insurance continued to invest in client-centric innovation this quarter. TD Direct Investing was the first bank-owned brokerage in Canada to launch partial shares trading, enabling investors to buy and sell a fraction of stocks and exchange-traded funds.
“TD Insurance supported customers and communities in their moments of need by providing advice and assistance to those impacted by severe weather-related events this quarter.”
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