It’s tough to pick a top value play for the rest of the year, especially since the Canadian financial scene is full of timelier names with newfound momentum, plenty of value, towering dividend yields, and even more impressive dividend growth profiles. In any case, the big Canadian banks, I believe, have stolen the show. And while the second half could be less rewarding for the long-term shareholders of the big Canadian bank stocks (they have gotten a little bit pricier in recent months), I still think that the cohort is a robust long-term buy today and on any dips that occur between now and the year’s end.
Though I’m still a big fan of the big banks, I do see the insurance scene as relatively underrated and highly underestimated by many analysts out there. Indeed, the big banks are what first come to mind when one thinks of the financial sector, but let’s not forget about the incredibly well-run life insurers and wealth management plays, many of which have had standout first halves to 2025. The big question is whether the strength will carry over into the second half and the first half of 2026.
Though it’s impossible to tell the immediate-term future, I do think that the insurance scene is a place which value-focused passive income investors should consider if they’re looking for the perfect name to stash in a TFSA (Tax-Free Savings Account) this July.
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A top insurance buy for value seekers
At this juncture the insurers, I think, look just as intriguing, if not more so, than the banks. Of the Canadian insurers, I’m inclined to name iA Financial (TSX:IAG) as my top Canadian insurance pick to stick with from here. The $13.4 billion insurance and wealth management play has a 2.4% dividend yield after soaring more than 62% in the past year.
Indeed, the gains have since slowed in the first half of 2025, but I do think that the company has what it takes to put together more incredible quarters, like the one that helped spark a melt-up late last year. Shares are also cheap at 15.4 times trailing price-to-earnings (P/E) and about as volatile as the rest of the TSX Index, with a beta of 0.98 at the time of writing. With fairly decent technicals and one of the best management teams in the insurance scene, I’d not look to discount the name just because it’s closing in on all-time highs again.
Of course, most insurers have been looking up in the past few years. But iA Financial, I think, is experiencing growth on many fronts that the rest of Bay Street may still be discounting heavily.
More gains to come?
Notably, it’s not just the life and health insurance offerings that have experienced decent demand, but the wealth management business has also looked quite solid of late. With a very well-covered dividend and more room for growth relative to peers (IAG stock’s yield is far lower), I’d be inclined to stash IAG shares away as a dividend growth gem to be held for at least the next decade. With impressive operating momentum and ample tailwinds, I expect IAG to be a good performer for quite some time.
