Swiss Re has decided to sell its entire stake in Definity Financial, a Canadian property and casualty insurer, for C$655 million, which is about $458.1 million. This move comes after a thorough review of Swiss Re’s investment portfolio.
On March 19, Swiss Re was scheduled to sell 11,647,217 common shares at a price of CA$56.20 each. This sale represents approximately 10.05% of Definity’s total outstanding shares. Once the transaction is complete, Swiss Re will no longer hold any shares in the Waterloo, Ontario-based company.
Andreas Berger, the CEO of Swiss Re, expressed admiration for Definity’s progress since its initial public offering in November 2021. He emphasized that Swiss Re values its ongoing relationship with Definity and believes in its potential to become a leading player in the Canadian insurance market.
The decision to sell is part of Swiss Re’s regular reassessment and rebalancing of its investment strategy, which includes both equity and alternative investments. The sale was facilitated by CIBC Capital Markets and National Bank Financial Inc., who underwrote the offering.
This divestment marks a significant shift for Swiss Re as it continues to refine its investment approach while acknowledging the advancements made by Definity in the competitive insurance landscape.