| Insurance |
Note 5: Insurance Insurance Results Insurance service results in our Consolidated Statement of Income are as follows: | | | | | | | | | | | | | | | | (Canadian $ in millions) | For the three months ended | For the six months ended | | April 30, 2026 | April 30, 2025 | April 30, 2026 | April 30, 2025 | | Insurance revenue | $ | 407 | | $ | 474 | | $ | 808 | | $ | 944 | | | Insurance service expenses | (275) | | (339) | | (633) | | (690) | | | Net expenses from reinsurance contracts | (32) | | (12) | | (6) | | (40) | | | Insurance service results | $ | 100 | | $ | 123 | | $ | 169 | | $ | 214 | |
Insurance investment results in our Consolidated Statement of Income are as follows: | | | | | | | | | | | | | | | | (Canadian $ in millions) | For the three months ended | For the six months ended | | April 30, 2026 | April 30, 2025 | April 30, 2026 | April 30, 2025 | | Investment return | $ | 53 | | $ | (258) | | $ | (5) | | $ | 301 | | | Insurance finance income (expense) from insurance and reinsurance contracts held | 5 | | 261 | | 123 | | (212) | | | Movement in investment contract liabilities | (7) | | (7) | | 9 | | (33) | | | Insurance investment results | $ | 51 | | $ | (4) | | $ | 127 | | $ | 56 | |
Insurance Contract Liabilities Insurance contract liabilities by remaining coverage and incurred claims comprise the following: | | | | | | | | | | | | | | | | | | | | | | (Canadian $ in millions) | For the three months ended April 30, 2026 | For the three months ended April 30, 2025 | | Liabilities for | Liabilities for | | Liabilities for | Liabilities for | | | remaining coverage | incurred claims | Total | remaining coverage | incurred claims | Total | | Insurance contract liabilities, beginning of period | $ | 19,448 | | $ | 186 | | $ | 19,634 | | $ | 17,814 | | $ | 218 | | $ | 18,032 | | | Insurance service results | (698) | | 598 | | (100) | | (763) | | 651 | | (112) | | | Net finance expenses (income) from insurance contracts | 1 | | – | | 1 | | (249) | | – | | (249) | | | Total cash flows | 628 | | (610) | | 18 | | 828 | | (675) | | 153 | | | Other changes in the net carrying amount of the insurance contract | 9 | | (9) | | – | | (1) | | (7) | | (8) | | Insurance contract liabilities, end of period (1) | $ | 19,388 | | $ | 165 | | $ | 19,553 | | $ | 17,629 | | $ | 187 | | $ | 17,816 | |
| | | | | | | | | | | | | | | | | | | | | | (Canadian $ in millions) | For the six months ended April 30, 2026 | For the six months ended April 30, 2025 | | Liabilities for | Liabilities for | | Liabilities for | Liabilities for | | | remaining coverage | incurred claims | Total | remaining coverage | incurred claims | Total | | Insurance contract liabilities, beginning of period | $ | 18,664 | | $ | 199 | | $ | 18,863 | | $ | 17,047 | | $ | 201 | | $ | 17,248 | | | Insurance service results | (1,301) | | 1,183 | | (118) | | (1,186) | | 972 | | (214) | | | Net finance expenses (income) from insurance contracts | (107) | | – | | (107) | | 282 | | – | | 282 | | | Total cash flows | 2,124 | | (1,206) | | 918 | | 1,486 | | (983) | | 503 | | | Other changes in the net carrying amount of the insurance contract | 8 | | (11) | | (3) | | – | | (3) | | (3) | | Insurance contract liabilities, end of period (1) | $ | 19,388 | | $ | 165 | | $ | 19,553 | | $ | 17,629 | | $ | 187 | | $ | 17,816 | |
(1) The liabilities for incurred claims relating to insurance contracts in our creditor and reinsurance business were $98 million as at April 30, 2026 and $104 million as at April 30, 2025.
Contractual service margin (CSM) from contracts issued was $20 million and $83 million for the three and six months ended April 30, 2026, respectively ($13 million and $31 million for the three and six months ended April 30, 2025, respectively). Total CSM for insurance contracts issued and reinsurance contract held was $1,664 million and $347 million, respectively, as at April 30, 2026 ($1,528 million and $312 million, respectively, as at October 31, 2025). Onerous contract losses for the three and six months ended April 30, 2026 and 2025 were not material. Insurance Risk Management The table below reflects the estimated immediate impact on, or sensitivity of, income before taxes to certain changes in interest rates, and includes the estimated impact of hedging arrangements and our exposure to equity price risk arising from our investment in equity securities. | | | | | | | | | (Canadian $ in millions) | April 30, 2026 | October 31, 2025 | Interest Rate Sensitivity (1) (2) | | | | 50 basis point increase | $ | (10) | | $ | 2 | | 50 basis point decrease | 7 | | (6) | | Equity Market Sensitivity (3) | | | | 10% increase | $ | 7 | | $ | 6 | | | 10% decrease | (5) | | (7) | |
(1)Estimated impact on, or sensitivity of, income before taxes to a 50 basis point increase or decrease in interest rates. (2)Interest rate sensitivities assume a parallel shift in assumed interest rates across the entire yield curve as at the end of the period with no change in the ultimate risk-free rate. (3)Estimated impact on, or sensitivity of, income before taxes to a 10% increase or decrease in our exposure to equity price risk arising from our investment in equity securities at the reporting date, assuming all other variables remain constant.
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