SLF, GWO, and IFC: 3 TSX insurance stocks to buy ahead of Q2

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SLF, GWO, and IFC: 3 TSX insurance stocks to buy ahead of Q2

Canada insurance stocks
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Highlights

  • Notably, Sun Life had posted solid Q4 results in 2021, in which it achieved a net income of C$ 1,078 million.
  • Great-West Lifeco's base total earnings were C$ 825 million in Q4 2021 compared to C$ 741 million in Q4 2020.
  • Intact Financial declared a dividend of C$ 1 per unit to the shareholders, and it is expected to be paid on March 31.

In Canada, most of the significant stocks are available on the Toronto Stock Exchange, and investors often have a tough time selecting stocks across different sectors.

Notably, the financial services sector is one of the top choices of investors in Canada as it comprises stocks of some of the biggest financial companies in the world.

This article will look at some of the top insurance stocks in the financial services sector and find out if you should explore them before the second quarter begins.

Sun Life Financial Inc. (TSX:SLF)

It is one of Canada's top life insurance companies and provides multiple financial services like wealth management, insurance, and retirement to individual and corporate entities.

In February, Sun Life Financial declared a dividend on its common and preferred shares, and it would be payable on March 31. The company would distribute a dividend of C$ 0.66 per unit for the common shares to the shareholders.

Notably, Sun Life had posted solid Q4 results in 2021, in which it achieved a net income of C$ 1,078 million, representing an increase of 45 per cent year-over-year (YoY). Meanwhile, the net income for fiscal 2021 was C$ 3,934 million, up 64 per cent YoY.

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Also, the company recorded significant growth in its insurance sales as it increased from C$ 1,425 million in Q4 2020 to C$ 1,606 million in the fourth quarter of 2021.

At the time of writing, the SLF stock was about one per cent to C$ 70.72 per share.

Great-West Lifeco Inc. (TSX:GWO)

One of the largest insurance companies in the world, the Great-West Lifeco, has business operations in Canada, the United States, Asia, and Europe through different subsidiaries.

Last year, the company achieved base earnings per share (EPS) growth of 21.9 per cent compared to an objective of 8-10 per cent per annum. Meanwhile, it was on track to achieve a base return on equity of 14.6 per cent compared to a target kept between 14-15 per cent.

In its financial report released in February, the company said that its acquisitions made in 2020 have performed well and have resulted in pre-tax contingent consideration provisions of C$ 52 million and C% 14 million.

Great-West Lifeco's base total earnings were C$ 825 million in Q4 2021 compared to C$ 741 million in Q4 2020. The GWO stock was up 1.2 per cent to C$ 36.6 apiece at 10 AM EST on March 29.

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Intact Financial Corporation (TSX:IFC)

It is a property and casualty insurance company in Canada and often attracts investors' attention due to its financial performance and distribution of dividends.

Intact Financial declared a dividend of C$ 1 per unit to the shareholders, and it is expected to be paid on March 31. Meanwhile, the company's dividend yield is 2.2 per cent.

In Q4 2021, Intact Financial's net operating income per share was C$ 3.78, and for fiscal 2021, it was C$ 12.41. This represented a YoY increase of 19 per cent and 25 per cent, respectively.

At the time of drafting, the IFC stock was up 0.03 per cent and trading at C$ 185.19 per share.

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Please note, the above content constitutes a very preliminary observation or view based on digital trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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