Global investment group CDPQ has announced its plan to sell 2.5 million common shares of Intact Financial Corporation, representing approximately 1.4% of the insurer’s issued and outstanding common shares.
CDPQ says that the shares are being sold at a gross price of C$278.60 per share through an underwritten offering led by CIBC Capital Markets and National Bank Financial. CDPQ also expects to generate approximately C$696.5 million in gross cash proceeds from the transaction.
The company said that the sale is part of its regular portfolio rebalancing. Following the completion of the transaction, the firm will hold approximately 6.6% of Intact’s issued and outstanding common shares, maintaining its position as the company’s largest shareholder. CDPQ also confirmed that Intact will remain one of its largest public market holdings.
As of its latest financial results, Intact’s combined ratio stood at 86.5%, reflecting an improvement of 3.6 percentage points from the previous year. Net operating income per share rose by 23% to US$4.93, supported by a 6% increase in investment income and a 13% rise in distribution income.
CDPQ has been a major shareholder in Intact for more than 15 years, and EVP Vincent Delisle said the investment paid off significant returns in that period.
However, he highlighted that the selloff would allow CDPQ to monetize part of those gains while maintaining its substantial stake in the insurer, including Intact’s Quebec operations.
Ken Anderson (pictured above), executive vice president and chief financial officer of Intact Financial Corporation, also said that CDPQ remains a key partner, particularly as the company delivered an annualised total shareholder return of 15% over the past decade.
As of June 30, 2024, CDPQ reported net assets of C$452 billion. The firm operates across major financial markets, including private equity, infrastructure, real estate, and private debt.
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