Caisse de dépôt et placement du Québec (CDPQ) has provided a loan of up to $150 million to SSQ Insurance, a Québec City-based provider of insurance and financial services.
The deal will help SSQ optimize its capital structure and execute its strategic plan, which includes a focus on innovation and development in the Canadian market.
Overseeing assets of $12 billion, SSQ offers group, individual life, health and general insurance products as well as a range of investment products.
CDPQ has invested in the company since the early 2000s. SSQ is also backed by Fonds de solidarité FTQ.
SSQ Insurance obtains $150 million in financing from CDPQ
QUÉBEC CITY, Dec. 6, 2018 /CNW Telbec/ – Caisse de dépôt et placement du Québec (CDPQ) announced a transaction of up to $150 million in the form of a loan to SSQ Insurance, one of the largest insurance and investment companies in Québec.
As a result of this transaction, SSQ Insurance will optimize its capital structure and pursue the execution of its strategic plan, which includes a focus on innovation and Canada-wide development. As such, SSQ Insurance will continue its digital transformation in order to continuously and efficiently meet the rapidly changing needs of its clients, particularly in the insurance industry.
“This transaction is an element of the capital optimization approach we have recently taken. We appreciate the trust CDPQ is putting in us. We have been partners for several years, and this announcement demonstrates our shared interest in continuing a business relationship that is beneficial to both of our organizations,” said Patrick Cyr, Senior Vice-President of Finance at SSQ Insurance.
“CDPQ is pleased to reaffirm its trust in a long-standing partner and again support the growth plan of SSQ Insurance, one of the Québec financial sector’s flagships,” added Marc Cormier, Executive Vice-President, Fixed Income at CDPQ. “The insurance industry provides stable returns over a long-term horizon, which is in keeping with CDPQ’s investment objectives.”
Through its resistance to economic cycles, the insurance industry is perfectly aligned with the investment profile that CDPQ seeks. In addition to stakes in some Québec-based insurers, CDPQ has recently conducted significant transactions in this industry in Australia, the United States and the United Kingdom.
Note that CDPQ’s initial investments in SSQ Insurance go back to the beginning of the 2000s.
ABOUT SSQ INSURANCE
Founded in 1944, SSQ Insurance is a mutualist company that puts community at the heart of insurance. With assets under management of $12 billion, SSQ Insurance is one of the largest companies in the industry. Working for a community of over three million customers, SSQ Insurance employs 2,000 people. Leader in group insurance, the company also sets itself apart through its expertise in individual life and health insurance, general insurance and the investment sector. For more information, go to ssq.ca.
ABOUT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at June 30, 2018, it held CAD308.3 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.
SOURCE Caisse de dépôt et placement du Québec
For further information: JEAN-BENOÎT HOUDE, CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC, Senior Advisor, Strategic Communications, +1 514 847-5493, email@example.com; DANIELLE RIOUX, SSQ INSURANCE, Communications and Public Relations Advisor, 1-866-332-3806, firstname.lastname@example.org