TD Home and Auto Capital Reduction

Summary#

TD Home and Auto Insurance Company has filed a notice saying it will ask the Superintendent of Financial Institutions (Canada) for permission to lower the stated capital on its common shares by up to $166,000,000 under the Insurance Companies Act (Canada). The company’s sole shareholder approved a special resolution on March 26, 2026; the notice was published on April 25, 2026. Approval is not automatic and depends on the regulator’s review.

What it does#

• The company will apply to the Superintendent of Financial Institutions (Canada) for approval under the Insurance Companies Act (Canada).
• It proposes to reduce the stated capital account for its common shares by up to $166,000,000.
• The reduced amount would be distributed to the company’s sole shareholder.
• The company’s directors and officers are authorized to make the application and carry out the change.
• The company’s Chairman or Chief Executive Officer will pick the exact amount to be reduced, up to the $166,000,000 limit.
• The notice makes clear that publication is not the same as regulatory approval.

Who's affected#

• TD Home and Auto Insurance Company — the firm making the change.
• The company’s sole shareholder (not named in the notice) — the recipient of the distribution.
• The Superintendent of Financial Institutions (Canada) — will review and decide whether to approve the change.
• Possible wider stakeholders such as policyholders, creditors or others might notice the change, but the notice does not say how—so any broader impacts are not specified.

Why it matters#

• If approved, up to $166,000,000 would be moved out of the insurer’s stated capital and given to its sole shareholder. That is a significant transfer of funds within the company’s balance sheet.
• Changes to stated capital can affect how a company is financed and how much capital it reports, which can matter to investors and creditors. The notice itself does not explain any operational or policyholder effects.
• This is a routine step required by the law for capital reductions; the regulator must still review and approve before anything changes.