P&C Stocks Viewed Favorably by TD Cowen Despite CAT Losses for Ontario and Damiani

Ontario and Damiani are facing losses related to CAT events. Separately, a TD Cowen analyst noted that Canadian property and casualty insurance companies are trading at "near-trough" valuations. The analyst expects continued top-line growth and limited drag from commercial property softness to support P&C stocks.

The losses reported by Ontario and Damiani highlight elevated CAT losses and structurally higher claims costs in the sector. However, TD Cowen suggests that these companies are currently undervalued, pointing to strong underlying conditions in personal lines and potential growth catalysts.