CDPQ Plans Major Sale of Intact Financial Shares Worth C$1 Billion
Montreal, Wednesday, 19 February 2025.
CDPQ announces selling 3.6 million shares of Intact Financial, raising C$1 billion to rebalance its portfolio while retaining a significant ownership stake in the company.
Strategic Portfolio Rebalancing
In a significant market move announced on February 19, 2025, CDPQ (Caisse de dépôt et placement du Québec) has increased its planned share sale in Intact Financial Corporation to 3.6 million shares, representing approximately 2% of the company [1]. This expanded offering, priced at C$278.60 per share, is expected to generate gross proceeds of C$996.6 million [1][4]. The decision marks an increase from the initially announced plan on February 18 to sell 2.5 million shares [2][3].
Impact on Ownership Structure
Following the transaction, CDPQ will maintain its position as Intact Financial’s largest shareholder, retaining approximately 6% ownership in the company [1]. This strategic move comes after more than 15 years of investment in Intact Financial [5], during which the insurer has demonstrated strong performance with its shares rising more than 20% over the past 12 months [1].
Market Position and Performance
Intact Financial Corporation holds a dominant position as Canada’s largest property and casualty insurance provider, with operations extending to commercial lines in the UK and Ireland [1]. The company has achieved impressive growth, with total annual operating direct premiums written reaching almost C$24 billion [2][3]. Intact’s recent financial performance has been strong, showing a combined ratio of 86.5% and a 23% increase in net operating income per share [5].
Strategic Implications
Vincent Delisle, CDPQ’s Executive Vice-President and Head of Liquid Markets, emphasized that this transaction allows the fund to monetize returns while maintaining significant ownership [1][3]. The move aligns with CDPQ’s portfolio management strategy, as the fund manages total net assets of CAD 452 billion as of June 30, 2024 [2][3]. The market has responded to this announcement, with Intact Financial’s shares showing a 3.3% decline in mid-morning trading to C$279.97 [1].