Definity Financial is preparing a debt sale totalling C$1bn ($723m) ahead of its acquisition of Travelers Canada, reported Bloomberg, citing sources.
The debt offering will be structured in two tranches of five and ten years.
According to the unnamed sources, the five-year portion could be priced at a margin of 0.95–1.05 percentage points above the benchmark government rates.
The price for the ten-year part is estimated to be in the 1.15–1.25 percentage point band.
No official comment has been made by a spokesperson for Definity Financial at this time.
The company, which holds a portfolio of Canadian insurance brands, is currently in discussions with potential investors regarding the issuance, as earlier reported by Bloomberg.
RBC Capital Markets and TD Securities are orchestrating the debt sale.
In May, Definity entered a $2.4bn deal to acquire the personal and most of the commercial insurance operations of Travelers Canada.
The deal is scheduled for completion in the first quarter of 2026 (Q1 2026), subject to regulatory approval.
The acquisition will not encompass Travelers Canada’s surety operations within the country.
Travelers Canada, with an annual gross written premium of approximately C$1.6bn, is a property and casualty (P&C) insurer with a diverse portfolio.
The acquisition is projected to place Definity among the leading five P&C insurers in Canada, with a combined annual premium approaching C$6bn, as stated in a press release from Definity.
For Q2 2025, Definity’s net income attributable to common shareholders stood at $75.1m, compared to $103.8m in the same quarter last year.
