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BUZZ-Canadian life insurers a 'safe haven' from trade war, Scotiabank says

ReutersFeb 3, 2025 1:55 PM

Scotiabank says Canadian life insurers stand out as an attractive "safe haven" from a trade war

U.S. President Donald Trump on Saturday ordered sweeping tariffs on Mexico, Canada and China, sparking a trade war that could impact global growth

Canada, a top U.S. trading partner, has vowed retaliatory tariffs

Brokerage says macro-economic impacts on the sector should be modest as core insurance products are recession resilient

Says that earnings streams and market exposure are geographically diversified, except for iA Financial IAG.TO that is more focused on Canada

Great-West Lifeco GWO.TO is now Scotiabank's top pick among Canadian life insurers, followed by Manulife Financial MFC.TO

Brokerage says it likes the fundamentals of life insurers and their ability to provide shelter from the coming tariff storm

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