Topic: How To Invest

Q: Can I get your recommendation on Definity Financial, trading on Toronto. Thank you.

Article Excerpt

A: Definity Financial Corp., $34.96, symbol DFY on Toronto (Shares outstanding: 115.9 million; Market cap: $4.1 billion;, is the new name for the holding company of Economical Insurance, Family Insurance Solutions, Petline Insurance, and Sonnet Insurance. Definity was created as part of Economical Insurance’s demutualization plan to convert from a mutual insurance company, owned by its policyholders, to a company owned by shareholders. On November 17, 2021, the holding company went public, selling shares of its stock at $22 each. At the same time as its IPO, Definity closed private share placements with HOOPP (Healthcare of Ontario Pension Plan) and Swiss Re Investments Holding Company. HOOPP now owns 19.9% of Definity, while Swiss Re owns 9.9%. Economical started the demutualization process nine years prior to going public, with policyholders finally approving the plan in May 2021. Its goal is to become one of the five-largest property and casualty insurers in Canada. Definity offers both personal and commercial insurance products. Through its personal insurance lines,…