Zurich-based Swiss Re has announced the sale of its entire stake in Definity Financial Corporation, a Canadian property and casualty insurance company.
As of its announcement on March 18, Swiss Re held more than 11.6 million common shares of Definity, representing 10.05 per cent of outstanding shares. At market close that same day, Definity’s stock was trading at $56.20 per share, which would generate approximately $CAD 655 million for Swiss Re.
Following the sale, which is set to take place on March 19, 2025, the reinsurer will no longer hold any shares in the Canadian company.
The transaction is being handled through underwriters CIBC Capital Markets and National Bank Financial, with whom Swiss Re entered into an agreement on March 17.
The Swiss reinsurer stated that it will notify regulatory authorities in each Canadian province and territory where Definity operates, in compliance with existing securities regulations.
Definity disclosed the transaction on the SEDAR+ stock market platform on March 18, as required under prompt disclosure regulations.
Regarding the reason for the sale, the company stated that “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.”
