Swiss Re is selling its entire 10.05% stake in Definity Financial, the Canadian property/casualty insurer, for C$655 million ($458.1 million) — a decision the reinsurer made after a review of its investment portfolio.
On March 19, Swiss Re was due to sell 11,647,217 common shares at CA$56.20 per share, which represents approximately 10.05% of the company’s outstanding common shares.
After the sale, Swiss Re will have divested its entire stake in Waterloo, Ontario-based Definity Financial.
“We are very impressed with the significant progress Definity has made since its IPO in November 2021 and continue to value the ongoing business relationship with the Company. Swiss Re continues to be a strong believer in Definity’s path towards becoming a leading P&C insurer in Canada,” said Andreas Berger, Swiss Re’s group chief executive officer, in a statement.
“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,” he added.
The offering was underwritten by CIBC Capital Markets and National Bank Financial Inc.
Photograph: Swiss Re logo displayed at Zurich headquarters; photo credit: Swiss Re
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