SSQ Insurance Obtains $150M in Financing From CDPQ
Caisse de dépôt et placement du Québec (CDPQ) announced a transaction of up to $150m in the form of a loan to SSQ Insurance, one of the largest insurance and investment companies in Quebec.
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.” – Senior Vice-President of Finance at SSQ Insurance, Patrick Cyr.
“CDPQ is pleased to reaffirm its trust in a long-standing partner and again support the growth plan of SSQ Insurance, one of the Quebec financial sector’s flagships. The insurance industry provides stable returns over a long-term horizon, which is in keeping with CDPQ’s investment objectives.” – Executive Vice-President, Fixed Income at CDPQ, Marc Cormier.
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 Quebec-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.