Swiss Re agrees sale of Definity stake for CAD 655m

Swiss Re, one of the world’s largest reinsurance companies, has agreed to sell all of its 11,647,217 common shares in Canada’s Definity Financial Corp. for approximately CAD 655 million.

The common shares, which represent approximately 10.05% of the issued and outstanding common shares of Definity as of March 17th, 2025, are being sold by Swiss Re Investment Holdings Company Ltd.

It’s been reported that the common shares are being sold on an underwritten block trade basis at a price of CAD 56.20 per common share for aggregate cash proceeds of around CAD 655 million.

The offering is expected to close on March 19th, 2025, and has been underwritten by CIBC Capital Markets and National Bank Financial Inc.

After giving effect of the offering, Swiss Re will no longer hold any common shares in Definity, the parent company to numerous Canadian property and casualty insurance companies.

The reinsurer invested in Definity back in 2021, then a newly created entity incorporated under the Insurance Companies Act to serve as the parent to Economical Insurance, Family Insurance Solutions, Inc., Petline Insurance Company, and Sonnet Insurance Company.

“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,” commented Andreas Berger, Swiss Re’s Group Chief Executive Officer.

“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.

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