Sentiment of Canadian corporate insiders is bullish heading into 2026. The INK Sentiment Indicator, which tracks the number of stocks on the Toronto Stock Exchange with key insider buying versus the number with key insider selling over the previous 60 days, is ending 2025 at about 90 per cent. At that level, there are 10 stocks with key insider selling for every nine stocks with key insider buying.

This gives a slight edge to the sellers, but it is a surprisingly small one, given the impressive rally in Canadian stocks over the past year. The INK Canadian Insider Total Return Index, which tracks 50 TSX-listed stocks with attractive INK Edge characteristics, is up more than 40 per cent in 2025. The INK Edge process quantitatively ranks stocks based on value, insider commitment and price momentum factors.

Considering the rally, we would have expected insider profit-taking to be higher, which would have pushed the INK Indicator lower. Instead, upbeat insider sentiment prevails across most sectors.

This year was easy for investors. Don’t expect a replay in 2026

Financials is one sector with bullish insider sentiment, with our sector indicator at 95 per cent, which is slightly above the market average. Within the group, three life insurers that have made their way into the top 30 per cent of our INK Edge rankings caught our attention.

Sagicor Financial Co. Ltd. SFC-T expanded its footprint into Canada with an October, 2023, acquisition of Canadian individual life and critical illness insurance provider ivari. On Nov. 13, Sagicor reported third-quarter core earnings of 25.8 US cents per basic share, up from 17.1 US cents a year earlier. Core earnings is a non-IFRS measure intended to remove from reported earnings items that management believes are not representative of operating performance and long-term earnings potential.

As the stock languished after results were released, Sagicor director Gilbert Palter bought 50,000 shares at an average price of $7.98 from Nov. 17 to Nov. 19. Mr. Palter is co-founder and chief investment officer of EdgeStone Capital Partners, an alternative asset management firm. Sagicor shares subsequently rallied about 16 per cent over the past month, and the stock is up more than 50 per cent in 2025.

There was some opportunistic insider buying at insurance giant Sun Life Financial Inc. SLF-T in the summer. On Aug. 8, the stock plunged 8 per cent after a negative media report was published on the outlook for the company’s dental business in the United States.

Four insiders, including president and chief executive officer Kevin Strain, spent a total of almost $1.3-million buying shares in the public market from Aug. 12 to Aug. 14. The 16,121 shares were purchased at an average price of $79.23. Since those purchases, there have been no public market insider sales, despite the stock having rallied 10 per cent from its Aug. 8 low.

Power Corp. of Canada POW-T is another big player in Canada’s life insurance industry. Senior officers and directors have sold $78-million worth of shares in the public market over the past six months.

All those sales were related to option exercises. Importantly, when president and CEO R. Jeffrey Orr exercised his options, he held on to 300,000 shares. He now holds just over 1.25 million Power shares, reinforcing the culture of equity ownership that has traditionally prevailed at the financial services conglomerate. Insider beneficial holding levels are a key component of the INK Edge ranking process, and Power ranks well above the median for large-cap insider holdings in the financials sector.

We will have to see if insiders in the financials sector remain optimistic as the new year unfolds. For now, the combination of limited insider profit-taking in stocks that have rallied and opportunistic buying in some market-sensitive insurance companies is an encouraging sign as we head into the new year.

Ted Dixon is CEO of INK Research, which provides insider news and knowledge to investors.