Are you worried that the recent market volatility could take a toll on your Tax-Free Savings Account (TFSA)? You’re not alone. With the TSX slipping in early 2025 and global trade tensions fueling fresh economic concerns, many investors are looking for safer ways to stay exposed to the financial sector.
While Canada’s financial sector is mainly dominated by banks, insurance companies present a strong alternative with less cyclicality, diversified income streams, and strong solvency. That’s why, for investors who want steady financial exposure without leaning too heavily into volatile sectors, Canadian insurers could offer a smart mix of growth, income, and stability.
In this article, I’ll walk you through three solid Canadian insurers you can happily buy and hold inside a TFSA.
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Manulife Financial stock
Let’s start with Manulife Financial (TSX:MFC) — one of Canada’s largest insurance providers with a growing global presence. The company offers insurance and investment services across Canada, Asia, and the United States. MFC stock currently trades at $41.85 per share, with a market cap of $71.9 billion and a 4.2% annualized dividend yield.
Manulife’s stock has surged by over 30% in the past year, supported by its strong core earnings of $7.2 billion in 2024, reflecting an 8% YoY (year-over-year) increase due mainly to strong growth in Asia and its global wealth management segment. During the year, the company’s net inflows of $13.3 billion in its asset management business also marked a major improvement.
Manulife is gradually shifting to higher-return, lower-risk segments through reinsurance deals and expanding digital tools, including artificial intelligence (AI)-driven platforms for agents. These moves support its long-term growth story and make it a solid TFSA hold.
Sun Life Financial stock
Next up is Sun Life Financial (TSX:SLF) — a global insurance and asset management giant with deep roots in Canada. SLF stock trades at $80.84 with a market cap of $46.3 billion and offers a 4.2% annualized dividend yield, paid quarterly. While it’s up 14% over the past year, Sun Life has recently seen pressure due to the broader market weakness, down about 5% year to date.
In the fourth quarter of 2024, Sun Life posted a net profit of $965 million with the help of double-digit earnings growth in its asset management and individual insurance segments. Its wealth and asset management unit grew earnings by 11% YoY due mainly to higher fee income, while individual protection surged 19% from a year ago with stronger performance in Asia and Canada.
Sun Life also ended the year with $1.54 trillion in assets under management, showcasing its scale. Overall, its strong life insurance capital adequacy test ratio and push into digital tools and global markets make it an attractive long-term hold for TFSA investors.
Intact Financial stock
Rounding out this list is Intact Financial (TSX:IFC), which is Canada’s largest property and casualty insurance provider. IFC stock trades at $298.79 with a market cap of $53.2 billion and offers a modest but consistent 1.8% dividend yield.
The stock has climbed over 35% in the last year due mainly to continued growth in its personal and commercial lines across all regions. In the latest reported quarter ended in December 2024, Intact’s net operating profit jumped 23% YoY to $4.93 per share, fueled by strong underwriting income and higher investment and distribution earnings. Similarly, its combined ratio improved to 86.5%, signalling disciplined execution and fewer large loss events. Even with $1.5 billion in catastrophe losses last year, Intact Financial delivered a 16.5% operating return on equity and raised its dividend for the 20th straight year — reflecting the underlying strength of its business model.
