Swiss Re Divests Entire Stake in Definity for CAD 655 Million
Deal News | Mar 18, 2025 | Re-Insurance News
Swiss Re, a major player in the reinsurance sector, has agreed to sell its entire holding of 11,647,217 common shares in Definity Financial Corp for approximately CAD 655 million. This selloff represents about 10.05% of the outstanding shares of the Canadian insurance firm as of March 17, 2025. The shares are being sold by Swiss Re Investment Holdings Company Ltd. on an underwritten block trade basis at a share price of CAD 56.20, with the deal expected to close by March 19, 2025. CIBC Capital Markets and National Bank Financial Inc. are underwriting this transaction. Swiss Re initially invested in Definity back in 2021, when Definity was a new entity created under Canada's Insurance Companies Act, serving as the parent company for several subsidiaries including Economical Insurance and Sonnet Insurance Company. Andreas Berger, Swiss Re's Group CEO, expressed satisfaction with Definity's progress since its IPO. The transaction aligns with Swiss Re's ongoing portfolio review and investment strategy, which aims at balancing equity and alternative investments.
Sectors
- Reinsurance
- Insurance
- Investment Banking
Geography
- Canada – Definity Financial Corp and its subsidiaries operate within Canada, and the transaction involves Canadian financial institutions.
- Switzerland – Home country of Swiss Re, the reinsurance company divesting its stake in Definity.
Industry
- Reinsurance – This is the industry in which Swiss Re operates, as a global leader in reinsurance services.
- Insurance – Definity Financial Corp operates in this sector, covering companies like Economical Insurance and Sonnet Insurance Company.
- Investment Banking – Involved in the transaction, CIBC Capital Markets and National Bank Financial Inc. are key players in this industry.
Financials
- CAD 655 million – The total cash proceeds from Swiss Re's sale of Definity shares.
- CAD 56.20 per share – The price per common share sold in the transaction.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Swiss Re | Selling Company | Company | A global leader in reinsurance services based in Switzerland. |
| Definity Financial Corp | Target company | Company | A Canadian insurance company that serves as the parent to several insurance entities. |
| Swiss Re Investment Holdings Company Ltd. | Entity conducting the sale | Company | An investment division of Swiss Re responsible for holding and selling the Definity shares. |
| CIBC Capital Markets | Underwriter | Company | Provided underwriting services for the sale transaction. |
| National Bank Financial Inc. | Underwriter | Company | Provided underwriting services alongside CIBC Capital Markets for the transaction. |