TD Home and Auto Stated Capital Reduction

Summary#

TD Home and Auto Insurance Company says it will apply to the Superintendent of Financial Institutions (Canada) for permission to reduce the stated capital of its common shares by up to $166,000,000. The sole shareholder approved the move by special resolution on March 26, 2026; the notice was published on April 25, 2026, but approval is not guaranteed.

What it does#

• Asks the regulator for approval, under the Insurance Companies Act (Canada), to lower the company's stated capital for its common shares by up to $166,000,000.
• The reduced amount would be paid out to the company’s sole shareholder.
• Company directors and officers are authorized to make the application and to choose the exact amount to reduce (up to the $166,000,000 limit).
• This is an application only — the Superintendent of Financial Institutions (Canada) will review it before any change can happen.

Who's affected#

• TD Home and Auto Insurance Company (the insurer) and its sole shareholder (the recipient of any distribution) are the primary parties named.
• The Superintendent of Financial Institutions (Canada) will review and decide whether to approve the request.
• It may be of interest to the company’s policyholders, creditors, and employees, though the notice does not say whether their rights or services will change.

Why it matters#

• If approved, up to $166,000,000 would move from the insurer’s capital account to its shareholder. That is a large cash transfer for a single company.
• Changes to an insurer’s stated capital can affect its financial buffer. That is why the regulator must review the proposal before approval.
• For the public, the key point is that this is a corporate finance step that requires regulatory sign-off; publication of the notice does not mean the change will happen.