Reports of the death of insurance at the big banks may be greatly exaggerated – if the latest financials are anything to go by
Vernon Clement Jones
Banking titan TD saw profit for its Canadian retail operation rise by more than 5%, with its insurance arm not only contributing to the growth but besting it.
Profit from its financial management and insurance arm rose 10% to $1.5 billion for the last quarter as TD saw demand for its insurance wares spike.
That growth is likely to get up the noses of independent P&C brokers as they struggle to achieve organic growth in Canada’s mature market.
TD’s performance also speaks to its success at overcoming the “two-door rule” that forces banks to keep their insurance and banking retail divisions at arms-length.
While RBC and others have pointed to that regulatory handcuff as a continuing problem – one with the potential to drive some banks out of the P&C space – TD has overcome it.
Brokers are already redoubling efforts to retain current clients as the banks lead Canada’s consumer-direct revolution.
