TSI’s Scott Clayton has identified five standout Canadian insurance companies whose steady, globally diversified earnings support dependable and sustainable dividends. As featured in our Globe and Mail exclusive, we applied our comprehensive 12-point TSI Dividend Sustainability Rating System to spotlight insurers with the strongest blend of income stability, global reach, and balance-sheet strength.
These dividend leaders operate from Canada’s major financial centres. They combine strong North American operations with rapidly expanding footprints in Asia, Europe, and other international markets. Each one reflects the best of Canada’s globally connected financial sector: these are companies that balance domestic reliability with international opportunity.
Our screening began with Canadian life and general insurers trading just below recent highs, then narrowed to those demonstrating sustained earnings growth, broad geographic diversification, and consistent dividend increases. In a mature home market, these insurers distinguish themselves by capturing growth in faster-developing regions. This offers investors not just stable income but also an element of regional and currency diversification.
TSI’s Dividend Sustainability Rating System rewards companies for long-term dividend consistency, financial discipline, resilient earnings, and a proven capacity to weather economic cycles. With additional points for industry leadership, prudent management, and sound balance sheets, these insurers earn top sustainability scores. That places them among Canada’s most secure and reliable income investments.
Excerpt from theglobeandmail.com, April 2, 2026
Sustainable dividend income from Canadian insurers using international operations to bolster growth.
The top Canadian insurers with significant foreign exposure are all currently trading just below their recent all-time highs. Given strong prospects for growth outside of Canada’s relatively mature market, they’re poised to move even higher.
Sun Life Financial Inc. and Manulife Financial Corp. continue to benefit from their successful Canadian and U.S. operations but also their exposure to Asian markets. Other insurers are profiting from overseas customers as well – and not just Asia, but the U.K., Europe and elsewhere.
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International operations offer investors not just added growth prospects, but valuable regional and currency diversification.
From a list of Canadian life insurers, we identified leaders with steady or rising earnings plus the added appeal of international diversification. We then applied our TSI Dividend Sustainability Rating System. It awards points to a stock based on key factors:
- One point for five years of continuous dividend payments
- Two points for more than five
- Two points if it has raised the payment in the past five years
- One point for management’s commitment to dividends
- One point for operating in non-cyclical industries
- One point for limited exposure to foreign currency rates and freedom from political interference
- Two points for a strong balance sheet, including manageable debt and adequate cash
- Two points for a long-term record of positive earnings and cash flow sufficient to cover dividend payments
- One point for an industry leader
Companies with 10 to 12 points have the most secure dividends, or the highest sustainability. Those with seven to nine points have above average sustainability; average sustainability, four to six points; and below average sustainability, one to three points.
5 Canadian insurers offering premium payouts
Sun Life Financial Inc. (with a 4.1% yield) and Manulife Financial Corp. (3.8%), both headquartered in Toronto, are among Canada’s leading life insurers, with expanding interests in Asia. Another Toronto-based leader, Fairfax Financial Holdings Ltd. (0.9%), mainly sells insurance and reinsurance – both in Canada and around the world. It also manages a large investment portfolio that includes holdings in India and Greece.
Winnipeg-headquartered Great-West Lifeco Inc. (3.8%) is top life insurer in Canada and the U.S. but also the U.K. and Europe. Montreal-headquartered holding company Power Corporation of Canada (4.0%) has controlling stakes in Great-West Lifeco as well as IGM Financial Inc. The latter is Canada’s largest independent mutual fund provider and further builds on Power’s regional and operational diversity.
Scott Clayton, MBA, is senior analyst for TSI Network and associate editor of TSI Dividend Advisor.
