In 2025, insurance companies in Canada issued $8.1-billion in debt and preferred shares, according to the latest figures from Morningstar DBRS.

“As in prior years, more than half of the total issuance was from life insurance companies, although property and casualty (P&C) insurers continue to close the gap,” Morningstar’s researchers write in the commentary, Canadian Insurance Debt Issuance Holds Steady in 2025; Similar Volumes Expected in 2026. “Larger insurance companies typically borrow in the Canadian market at least annually, while most have also accessed the international capital markets occasionally in the past, including in 2025.”

Definity Financial Corporation was noted as a new borrower in 2025, following the company’s inaugural bond issuance ($1-billion) to fund its acquisition of Travelers’ Canada.

Sun Life Financial Inc. was the largest borrower, issuing $2-billion in subordinated unsecured debentures in 2025 for general corporate purposes. Morningstar DBRS says this could include acquiring remaining interests in SLC Management affiliates.

“Manulife’s USD $1-billion issuance is likely to support refinancing activities given its long history of proactively refinancing its maturing debt,” they add. “Manulife has more debt maturing in 2026 and 2027 (in both Canadian and U.S. dollars) and will likely continue to tap the bond market if it wants to maintain a similar capital structure.

Most other insurers do not have significant refinancing requirements in the near term.” In both medium-term notes and unsecured subordinated debentures combined, Manulife issued $1.877-billion in 2025. Behind Sun Life, Fairfax Financial Holdings Limited was the second largest issuer in 2025, issuing $1.954-billion in senior unsecured debt during the year.

They conclude saying the firm does not expect a significant change in insurance companies’ target leverage ratios over the short to medium term: “Accordingly, we expect total debt issuance over the next couple of years to be in the range of $6-billion to $9-billion, consistent with the prior two years and close to the past few years’ average, but far below the highs reached in 2020 and 2021.”