- US Investors Mulling Canadian Rental Ownership—Should You Buy A Condo Or REIT?
May 13, 2026
How Non-Resident Landlord Insurance Impacts Toronto Condo Rental Yields
Key Takeaways
Canadian P&C carriers now require a licensed local property manager and documented inspection reports as preconditions to write or renew landlord policies for non-resident owners. Water damage represented more than 40% of Canadian home insurance claims between 2021 and 2025, keeping absentee-owner underwriting tight and pricing documentation directly into premiums. For U.S. non-resident investors evaluating Toronto rental property, insurance and property-management costs alone consume 13% to 19% of gross rent before mortgage, taxes, or repairs.
A non-resident investor used to be able to buy a Toronto condo, hand the keys to a relative, and easily find a carrier willing to write the policy. Well in 2026 things have changed and it's much more complicated.
Canadian P&C insurers tightened absentee-owner underwriting sharply after 2020, and this change has a direct impact on the rental-investment returns. For U.S. investors weighing direct Canadian rental ownership against alternatives like residential REITs, this insurance tightening is making it more costly and complicated to get adequate coverage for non-residents of Canada.
What Changed In The Underwriting Layer
Canadian P&C reinsurance costs rose post-2020, claim severity climbed, and carriers tightened their audit posture on policies written to owners who do not live near the property. Allstate Canada data shows water damage representing more than 40% of Canadian home insurance claims between 2021 and 2025, with external water sources alone accounting for nearly a quarter of claims in 2025. Those figures sit behind every absentee-owner clause standard in Ontario landlord policies.
Many Canadian landlord policies now contain a 30-day occupancy clause, an explicit inspection expectation, and a documented list of credentials the carrier expects from the on-the-ground manager. A pinhole leak found within hours costs a few thousand dollars to remediate. The same leak found several days later runs $15,000 to $40,000 out of pocket. Vacant properties and properties that are not professionally managed have a higher risk.
For non-resident owners, Ontario carriers expect a locally based property manager with a written agreement, 24/7 emergency response, and time-stamped inspection reports. Those are some of the requirements non-resident condo insurance underwriters look for before binding a policy on out-of-country ownership. A friend who checks in occasionally fails at the point of claim, when the insurer asks for a dated move-in inspection report to establish a baseline, an informal arrangement with a friend overseeing your property won't suffice.
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The Condo-Specific Layer
A condo owner does not insure the building itself. The building’s master policy covers the structure. The unit owner’s policy covers improvements inside the suite, contents, liability, loss of rental income, and any deductible allocated back to the unit when a claim originates within it.
That last piece matters. A water claim from a non-resident owner’s unit can produce a deductible chargeback in the tens of thousands of dollars, and the landlord policy is the line item that absorbs it. Carriers want documentation that the policy limits match the building’s chargeback ceiling, and a manager with a written agreement is positioned to mitigate damage within hours rather than days. This is why landlord insurance basics in the Canadian condo context look different from a U.S. single-family rental.
The Toronto Yield Math, Working Example
Consider a Toronto one-bedroom condo rented at the rentals.ca March 2026 average of $2,206 per month, or $26,472 in gross annual rent.
Property management runs 8% to 10% of gross rent on a Toronto condo, roughly $2,118 to $2,647, in line with property management fee benchmarks for Canadian residential rentals. A leasing fee of 50% to 100% of one month’s rent applies per new placement, annualizing to roughly $700 to $1,100 across a two-to-three-year cycle. Landlord insurance for a Toronto condo unit ranges from a few hundred to over $1,200 a year depending on coverage and chargeback alignment. CRA Part XIII withholding applies at 25% of gross rent absent a Form NR6 election, though it is creditable on a Section 216 return.
The compliance layer (management, leasing, insurance) lands at roughly $3,500 to $5,000 on this $26,472 rental, or 13% to 19% of gross rent. Add property taxes, condo fees, and repairs, and the all-in operating drag before mortgage costs typically runs 35% to 45% of gross rent. For an investor used to modeling U.S. rentals with 6% to 8% management cost and a single-line policy, Toronto requires a different template, priced in on day one rather than after the first renewal.
How This Compares To Listed Alternatives
For investors wanting exposure to the Canadian P&C franchise absorbing this trend, Intact Financial Corporation (TSX:IFC). IFC reported operating return on equity of 19.5% for 2025, up three points year-over-year, with a combined ratio of 85.9%. It carries the bulk of the Canadian personal-property book.
U.S. analogues in the same environment include Allstate Corporation(NYSE:ALL) and The Travelers Companies(NYSE:TRV), both names worth watching for how the absentee-owner trend translates into U.S. residential and landlord underwriting.
For investors who want Canadian residential exposure without absentee-landlord friction, Canadian Apartment Properties REIT(OTC:CDPYF) trades on the U.S. over-the-counter market and operates roughly 47,000 apartment units. The REIT carries its insurance and compliance infrastructure at portfolio scale, insulating unitholders from absentee-owner underwriting entirely. Investors comparing options can also weigh the broader best REITs field for residential exposure within an income portfolio.
What Non-Resident Investors Should Do With This
Three practical points for U.S. non-residents evaluating direct Toronto rental exposure.
Price the full cost stack into the underwriting model before the offer goes in. Management fees, leasing fees, insurance premiums, and Part XIII withholding belong in the net operating income line from day one. The carrier will not write the policy without the management piece in place, so neither can be deferred.
Build the documentation infrastructure at acquisition. A written management agreement, an inspection cadence, and a working insurance file should exist from the start, not after a claim reveals a gap.
Recognize the structural difference between direct ownership and listed exposure. Residential REITs absorb the absentee-owner underwriting layer at portfolio level, so their insurance line items behave differently than a single non-resident-owned condo. The gap is wider in 2026 than it was five years ago. Benzinga’s primer on rental property investing covers the standard framework, with the caveat that the Canadian non-resident overlay adds the requirements above.
Where The Trend Is Headed
Canada sits at the leading edge of an absentee-owner underwriting trend U.S. carriers have begun importing into high-claim-frequency markets like Florida, California, and the Gulf Coast. The drivers are consistent: reinsurance costs, water-damage frequency, and the documentation standards that follow. For listed P&C exposure, the trend supports disciplined underwriting at carriers leading the tightening. For direct rental investors, it is a structural change in the cost template.
Conclusion
The Canadian landlord insurance market is not closing to non-resident investors. It is becoming more disciplined, with documentation and management requirements priced directly into the policy. For U.S. investors who want direct Toronto rental exposure, the math still works at the right entry price, the right manager, and the right insurance file. For those who prefer Canadian residential exposure without the operational layer, the listed REIT and the underlying P&C names reflect the same trend in their loss-ratio discipline.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
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This article US Investors Mulling Canadian Rental Ownership—Should You Buy A Condo Or REIT? originally appeared on Benzinga.com
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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- Travelers' Net Investment Income Aids Profitability and Growth
May 13, 2026 · zacks.com
TRV's growing investment income helps offset underwriting pressure and support earnings growth.
- TRV's Solid Growth Comes With a Premium Valuation: Hold or Buy?
May 12, 2026
Shares of The Travelers Companies, Inc.TRV have gained 10.9% over the past year, outperforming its industry’s 7.1% decline but underperforming the broader Finance sector's return of 12.2%.Zacks Investment Research
Image Source: Zacks Investment Research
The insurer’s earnings have a solid track record of beating estimates in each of the trailing four quarters, with an average of 40.38%. Earnings have grown 19.2% over the past five years.
Shares of other insurers, such as The Allstate Corporation ALL and Arch Capital Group Ltd. ACGL, are also outperforming the industry average, while The Progressive Corporation PGR has underperformed the industry.
TRV Shares Are Expensive
TRV shares are trading at a premium to the Zacks Property and Casualty Insurance industry. Its price-to-book value of 1.98X is higher than the industry average of 1.32X, the Finance sector’s 4.38X and the Zacks S&P 500 composite’s 7.91X.Zacks Investment Research
Image Source: Zacks Investment Research
Shares of Allstate, Arch Capital and Progressive are also trading at multiples above the industry average. Their price-to-book ratios are 1.86x, 1.43x and 3.54x, respectively.
Zacks Estimates for TRV
The Zacks Consensus Estimate for 2026 revenues is pegged at $49.1 billion, suggesting 0.4% year-over-year growth. The consensus estimate for earnings per share is currently pegged at $28.03 for 2026, indicating a 1.6% year-over-year decline.
The consensus estimate for 2027 EPS and revenues indicates an increase of 1.2% and 3.2%, respectively, from the corresponding estimates of 2026.Zacks Investment Research
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 and 2027 earnings moved 2.7% and 0.8% north in the last 30 days.
Factors Favoring Travelers
Travelers is benefiting from strong underwriting discipline and healthy performance in its Business Insurance segment, which remains a key long-term growth driver. Renewal premium change remained solid at 5.8%, while record new business and double-digit pricing in key commercial lines reflect strong execution and market share gains. Strong underwriting profitability, disciplined risk management and improving Personal Insurance margins continue to support earnings growth and margin stability for TRV.
Travelers’ investment income continues to grow steadily, supported by higher interest rates and the expansion of its high-quality fixed-income portfolio. Approximately 94% of its investment portfolio is allocated to fixed maturities and short-term investments. The company expects its $100 billion investment portfolio to continue generating a higher level of predictable and reliable net investment income.
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Travelers continues to invest heavily in technology to improve underwriting, claims, and distribution partner experience. Management indicated that it invests more than $1.5 billion annually in technology, including an AI strategy, while pursuing ongoing upgrades to pricing models and field tools. New product enhancements and digital platforms such as TRAVIS and TCAP are helping drive market share gains and stronger distribution relationships.
Risks for TRV
Travelers reported catastrophe losses of $761 million pre-tax in first-quarter 2026, primarily from severe wind and hail storms and winter storms across multiple states. Exposure to catastrophe events remains a recurring source of underwriting variability for property and casualty insurers.
Rising reinsurance costs can reduce earnings and constrain underwriting flexibility, particularly after periods of elevated global catastrophe activity.
Higher repair costs and other inflation-linked inputs can lift claims severity in both auto and homeowners lines and challenge pricing and retention.
Conclusion
Strong underwriting, healthy premium growth, rising investment income and sustained pricing strength bode well for future earnings growth. However, catastrophe losses, rising reinsurance costs and inflation-driven claims severity are the remain key concerns.
TRV has a track record of 22 consecutive years of dividend increases, with a compound annual growth rate of 8% over that period. Its current dividend yield of nearly 2% is much better than the industry average of 0.3%, making it an attractive pick for yield-seeking investors.
Higher return on capital, favorable growth estimates and impressive dividend history should continue to benefit Travelers over the long term. Given the premium valuation, it is wise to adopt a wait-and-see approach on this Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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- Here's How CB's Technology Investments Support Long-Term Growth
May 12, 2026
Chubb Limited CB, the world’s largest provider of property and casualty (P&C) insurance and reinsurance, is considered a strong user of technology, particularly in commercial insurance, cyber insurance, underwriting analytics, and risk modeling. Chubb relies on technology mainly to improve underwriting, claims processing, cyber protection, and distribution efficiency.
Chubb is adopting technologies such as artificial intelligence, predictive analytics, industry data, and catastrophe models to assess business risks more accurately rather than relying only on traditional underwriting. These measures enable better pricing and risk selection, which usually lead to lower combined ratios and stronger underwriting profitability.
In its December 2025 investor presentation, Chubb made Digital Transformation one of its core strategic pillars and described it as a major driver of both profit growth and expense reduction over the next three to four years. Management stated that digital transformation would impact 70% of the organization over the next three years. The plan centers on AI, foundational technologies, data & analytics, organizational management skills, and technical expertise aimed at lowering expenses.
In an aid to support this shift, Chubb has made major technology investments, such as Data centers, Large-scale data ingestion capabilities, broad use of AI algorithms and large language models (LLM). It has also employed more than 3,500 engineers and expanded engineering hubs in Mexico, Greece, India and Colombia. CB also stated targets for the next three to four years, which include 20% headcount reduction, 1.5 percentage point improvement in combined ratio from expense savings, 85% of major underwriting and claims processes automated, and 85% of global gross written premium operating as a digital business.
Chubb also leverages technology to modernize insurance through its embedded insurance platform, Chubb Studio, which is one of the finest examples of how Chubb uses technology to gain a competitive advantage. Chubb Studio enables digital platforms worldwide to seamlessly integrate insurance products into their customer journeys via APIs and SDKs. In November 2025, Chubb, the world leader in insurance, launched a new AI-powered optimization engine within Chubb Studio. This new capability uses proprietary AI to analyze data and deliver personalized insurance offerings at the point of sale. The optimization engine enables Chubb's partners to increase customer engagement and build stronger brand loyalty with measurable growth by aligning protection solutions with the unique needs of their customer base.
These market-leading technologies underscore Chubb's commitment to providing the latest technology to benefit the digital partners and their customers.
Chubb uses technology as a competitive moat in underwriting and risk management, on the basis of which the insurer has historically maintained strong profitability compared with many insurers.
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What About Other Players?
The Travelers Companies, Inc. TRV uses technology extensively to improve claims efficiency, catastrophe risk management and pricing discipline. Technology is a key reason Travelers has remained one of the strongest performers in commercial insurance. Travelers uses AI, predictive analytics, and big data to improve underwriting decisions, maintain pricing discipline and Lower claims costs. Travelers is considered one of the most technology-advanced commercial insurers, especially in analytics and catastrophe modeling.
The Progressive Corporation PGR is one of the most technology-driven insurers in the United States, and technology is a major reason for its strong underwriting performance and market-share gains. Unlike many insurers, Progressive uses technology directly as a competitive advantage in pricing, claims, customer acquisition and risk selection. Among large U.S. insurers, Progressive is often viewed as the best example of technology translating directly into underwriting advantage and shareholder returns. Its combination of telematics, AI pricing, and massive proprietary data creates a strong competitive moat.
CB’s Price Performance
Shares of CB have gained 12.2% in the past year, outperforming the industry.Zacks Investment Research
Image Source: Zacks Investment Research
CB’s Undervaluation
The stock is overvalued compared with its industry. It is currently trading at a price-to-book value multiple of 1.55, higher than the industry average of 1.32. It carries a Value Score of B.Zacks Investment Research
Image Source: Zacks Investment Research
Estimate Movement for CB
The Zacks Consensus Estimate for CB’s second-quarter 2026 moved down 0.6%, and the third-quarter 2026 EPS has moved up 0.3% in the past 30 days. The same for full-year 2026 and 2027 EPS has moved up 1.1% and 1.8%, respectively, in the past 30 days.
The consensus estimate for CB’s 2026 and 2027 EPS and revenues indicates a year-over-year increase.Zacks Investment Research
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CB stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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- Skyward Specialty Appoints Melissa Goto to Lead E&S Brokerage and Inland Marine Businesses
May 12, 2026
Skyward Specialty Insurance Group, Inc.
HOUSTON, May 12, 2026 (GLOBE NEWSWIRE) -- Skyward Specialty Insurance Group, Inc.®, a Skyward Group Company, (Nasdaq: SKWD) ("Skyward Specialty" or "the Company"), a leading provider in the specialty property and casualty (P&C) insurance market, announced the appointment of Melissa Goto as President, E&S Brokerage and Inland Marine, to spearhead the strategic development of these businesses.
Goto brings more than 25 years of underwriting and leadership experience, with proven ability to drive profitable growth, lead high-performing teams, and execute strategy across specialty P&C lines. Most recently, she served as Head of P&C Specialty Lines at Intact Insurance, where she led national underwriting teams in a variety of complex markets. Her experience also includes key leadership positions at Chubb and more than 16 years at Travelers, where she managed multiple portfolios across a wide range of E&S markets.
“Our ability to win in select markets starts by building a leadership team of the industry’s top talent. Melissa exemplifies that standard. She has a reputation for delivering consistent underwriting performance and cultivating high-performing teams, making her an exceptional fit for Skyward Specialty,” said John Burkhart, President, U.S. Property & Casualty, Skyward Specialty. “Her broad knowledge across specialty P&C lines and deep expertise in the E&S market will help us further strengthen our position and provide greater value to our partners.”
About Skyward Specialty
Skyward Specialty is a rapidly growing and innovative specialty insurance company, delivering commercial property and casualty products and solutions on a non-admitted and admitted basis. The Company operates through nine underwriting divisions – Accident & Health, Agriculture and Credit (Re)insurance, Captives, Industry Solutions, Global Property, Professional Lines, Specialty Programs, Surety and Transactional E&S. SKWD stock is traded on the Nasdaq Global Select Market, which represents the top fourth of all Nasdaq listed companies.
Skyward Specialty’s insurance companies consist of Houston Specialty Insurance Company, Imperium Insurance Company, Great Midwest Insurance Company, and Oklahoma Specialty Insurance Company. These insurance companies are rated A (Excellent) with stable outlook by A.M. Best Company. Additional information about Skyward Specialty can be found on our website at www.skywardinsurance.com.
About Skyward Group
Skyward Group (Nasdaq: SKWD) is the holding company brand for its U.S. and U.K. businesses, Skyward Specialty Insurance Group, Inc.® and Apollo Holding Group, respectively, delivering a comprehensive suite of specialized insurance solutions across global specialty property and casualty markets. Focused on the specialty industry’s most niche, complex risks of today and the emerging challenges of tomorrow, Skyward Group leverages the forward-looking insight and disciplined execution of each organization to drive sustainable growth and long-term value for its shareholders, distribution partners and other stakeholders. For more information about Skyward Group, Skyward Specialty and Apollo, please visit skywardgroup.com.
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Media Contact
Haley Doughty
Skyward Specialty Insurance Group
713-935-4944
hdoughty@skywardinsurance.com
Investor Contact
Skyward Specialty Investor Relations Dept
IR@skywardinsurance.com
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- TRV's Solid Growth Comes With a Premium Valuation: Hold or Buy?
May 12, 2026 · zacks.com
Travelers' underwriting strength, rising investment income and tech investments support growth despite catastrophe and inflation risks.
- Here's How CB's Technology Investments Support Long-Term Growth
May 12, 2026 · zacks.com
Chubb Limited is betting big on AI and digital transformation, targeting lower costs, automated processes, and stronger underwriting profitability.
- Why Travelers (TRV) is a Top Momentum Stock for the Long-Term
May 11, 2026
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- Why Travelers (TRV) is a Top Momentum Stock for the Long-Term
May 11, 2026 · zacks.com
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- Travelers Launches Claim Insights As AI And Valuation Case Converge
May 10, 2026
Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge.
Travelers Companies (NYSE:TRV) has introduced Claim Insights, a new AI-powered feature within its e-CARMA risk management platform. The tool is designed to help risk managers analyze claims data more efficiently using advanced analytics. This launch reflects Travelers’ focus on integrating technology with its core commercial insurance offerings.
Travelers Companies, trading at $298.94, has seen its stock return 12.1% over the past year and 109.1% over the past five years. For investors tracking large U.S. insurers, the launch of Claim Insights adds a fresh angle to the NYSE:TRV story that goes beyond share price moves and recent valuation commentary.
For clients and investors, the key question is how Claim Insights might change the day-to-day value of working with Travelers, from faster claim analysis to potentially clearer loss trends. As this tool rolls out within e-CARMA, it gives you another factor to monitor when comparing NYSE:TRV with other commercial insurance providers that are also adding more data and AI into their offerings.
Stay updated on the most important news stories for Travelers Companies by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Travelers Companies.NYSE:TRV Earnings & Revenue Growth as at May 2026
📰 Beyond the headline: 2 risks and 4 things going right for Travelers Companies that every investor should see.
Quick Assessment
⚖️ Price vs Analyst Target: At $298.94 versus a consensus target of $313.61, TRV trades about 4.7% below where analysts sit, so pricing is close to their view. ✅ Simply Wall St Valuation: Simply Wall St estimates the stock is trading 53.5% below its fair value, flagging a wide valuation gap. ✅ Recent Momentum: A 30 day return of 1.3% shows modest positive momentum into this product launch.
The timing of any decision to buy, sell or hold Travelers Companies will depend on each investor's circumstances. For more detail, see Simply Wall St's company report for the latest analysis of Travelers Companies's Fair Value.
Key Considerations
📊 Claim Insights links the investment case more closely to how Travelers turns its large data set into practical tools for risk managers. 📊 Watch adoption of e-CARMA features, trends in claims handling efficiency and any commentary on customer retention or new commercial wins that are associated with this tool. ⚠️ Forecast earnings are expected to decline by an average of 11.2% per year for the next 3 years, so monitor whether AI driven efficiencies are reflected in profitability metrics.
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Dig Deeper
For a fuller picture including more risks and potential rewards, review the complete Travelers Companies analysis. You can also visit the community page for Travelers Companies to see how other investors interpret this news within the broader company narrative.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include TRV.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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