Definity Financial Prepares C$1bn Bond Issuance, Acquires Travelers Canada's Insurance Operations
Definity Financial is preparing for a significant debt offering and acquisition. It is planning a C$1bn bond issuance on Yahoo Finance and has entered a $2.4bn deal to acquire Travelers Canada's personal and commercial insurance operations. The acquisition is set to bolster Definity's position among Canada's top five below property and casualty (P&C) insurers.
The bond issuance, planned for completion in Q1 2026, will be structured in two tranches of five and ten years. The five-year portion is expected to be priced at a margin of 0.95-1.05 percentage points above the benchmark government rates. The ten-year part is estimated to be in the 1.15-1.25 percentage point band.
Definity's net income attributable to common shareholders for Q2 2025 stood at $75.1m. The company is currently in discussions with potential investors regarding the issuance, which is being prepared by lead underwriters and financial advisors chosen by Definity Financial. The acquisition, announced in May, will not include Travelers Canada's surety operations within the country. Upon completion, it is projected to place Definity among the leading five below P&C insurers in Canada, with a combined annual premium approaching C$6bn.
Definity Financial's debt offering and acquisition are set to strengthen its position in the Canadian insurance market. The C$1bn bond issuance, scheduled for Q1 2026, will fund the acquisition of Travelers Canada's personal and commercial insurance operations. This deal is projected to make Definity one of the leading five below P&C insurers in Canada.
