DEFINITY WELCOMES NEW REGULATIONS FOR DEMUTUALIZED P&C COMPANIES
WATERLOO, ON, Jan. 4, 2023 /CNW/ - Definity Financial Corporation ("Definity") (TSX: DFY) welcomes the adoption of new Canadian federal regulatory amendments which provide greater flexibility in the corporate structures available to demutualized property and casualty insurance companies. The amended regulations will also increase the duration of the period during which demutualized P&C companies must remain widely held from two to four years.
The amendments enable Definity to apply to the Minister of Finance (Canada) for approval to continue under the Canada Business Corporations Act. The application is expected to be submitted promptly after a period of public notice. The continuance will be subject to government and regulatory approval. The new restricted ownership period comes into effect immediately, automatically extending the requirement for Definity to be widely held until November 22, 2025.
"We are pleased that the federal government has taken these steps to promote competition within Canada's P&C industry," says Rowan Saunders, President and CEO, Definity. "We believe the amendments will provide us with additional financial flexibility and capacity as we pursue our goal of becoming a top-5 P&C insurer in Canada while allowing us to compete on a level playing field as we continue to invest in innovation and pursue organic and inorganic growth."
To read more about the updated regulations, click here.
Definity Financial Corporation ("Definity", which includes its subsidiaries where the context so requires) is one of the leading property and casualty insurers in Canada, with over $3.5 billion in gross written premiums for the 12 months ended September 30, 2022 and over $7.9 billion in assets as at September 30, 2022.
This news release contains "forward-looking information" within the meaning of applicable securities laws in Canada, which reflects Definity's current expectations regarding future events, including statements concerning the impact of the amended legislation, Definity's process for applying to the Minister of Finance for approval to continue under the CBCA and the timing of that application, and the impact on Definity of continuance under the CBCA. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Definity's control. Results could differ materially from those projected herein. Definity does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.
SOURCE Definity Financial Corporation
please contact: Media inquiries: Mathieu Genest, Manager, Public and Media Relations, (C) 647-224-8975, [email protected]; Investor inquiries: Dennis Westfall, Head, Investor Relations, (C) 416-435-5568, [email protected]
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