Swiss Re selling its Definity shares
Global reinsurer Swiss Re is selling its shares of Canadian insurer Definity Financial Corp.
Swiss Re’s sale of its 10.05% stake in Definity Financial — which amounts to 11,647,217 common shares — will equal approximately $655 million in aggregate cash at a price of $56.20 per common share on an underwritten block trade basis.
“Swiss Re can confirm that we have fully divested from Definity Financial,” a Swiss Re spokesperson tells Canadian Underwriter in a statement. “Swiss Re’s decision to divest is consistent with our overall investment strategy across equity and alternative investments.”
The company’s spokesperson confirmed that “Swiss Re remains fully committed to the Canadian market,” and Definity Financial will remain Swiss Re’s reinsurance client.
The Swiss Re Investment Holdings Company Ltd. expects to close the deal on Mar. 19 and will hold no common shares in Definity Financial after that, it said.
“Swiss Re continues to be a strong believer in Definity’s path towards becoming a leading P&C insurer in Canada,” Swiss Re’s Group CEO Andreas Berger said in a release. “The sale was done in the context of a regular review and rebalancing of Swiss Re’s investment portfolio and is consistent with the Group’s overall investment strategy across equity and alternative investments.”
The reinsurer initially invested in Definity in 2021, when Definity’s subsidiary, Economical Insurance, demutualized into a corporation owned by shareholders.
“We are very impressed with the significant progress Definity has made since its [initial public offering] in November 2021 and continue to value the ongoing business relationship with the company,” Berger said.
The offering has been underwritten by CIBC Capital Markets and National Bank Financial Inc.
On Tuesday, Mar. 18, Swiss Re filed an early warning report with the securities regulators in the provinces and territories of Canada in connection with the common shares sold.
In Canadian securities law, under the early warning system, disclosure must be made when a person or company acquires ownership or control of 10% or more, and if that ownership increases or decreases by a certain threshold.
Feature image by iStock.com/Mikko Lemola
