Canadian insurer Definity Financial prepares $723m debt sale

Core Viewpoint - Definity Financial is preparing a C$1bn ($723m) debt sale to finance its acquisition of Travelers Canada, which is expected to enhance its position in the Canadian property and casualty insurance market [1][2]. Group 1: Debt Offering Details - The debt offering will be structured in two tranches: one for five years and another for ten years [1]. - The five-year tranche is expected to be priced at a margin of 0.95–1.05 percentage points above benchmark government rates, while the ten-year tranche is estimated to be priced in the 1.15–1.25 percentage point range [1][2]. - RBC Capital Markets and TD Securities are managing the debt sale [2]. Group 2: Acquisition Overview - Definity Financial has entered into a C$2.4bn deal to acquire the personal and most commercial insurance operations of Travelers Canada, with completion scheduled for Q1 2026, pending regulatory approval [2][3]. - The acquisition will not include Travelers Canada's surety operations [3]. - Travelers Canada has an annual gross written premium of approximately C$1.6bn and is recognized as a property and casualty insurer with a diverse portfolio [3]. Group 3: Market Position and Financial Performance - Following the acquisition, Definity is projected to rank among the top five property and casualty insurers in Canada, with a combined annual premium nearing C$6bn [4]. - For Q2 2025, Definity reported a net income attributable to common shareholders of $75.1m, a decrease from $103.8m in the same quarter the previous year [4].