Author: vidhyamunnangi

Scotiabank has secured the approval from the Board of Governors of the US Federal Reserve System to proceed with its second phase of investment for an additional 10% of KeyCorp.  

This move will increase Scotiabank’s stake in US regional lender KeyCorp to 14.9%. 

In August 2024, Scotiabank disclosed that it plans to acquire a 14.9% stake in KeyCorp for around $2.8bn through a two-phase approach.  

The initial phase, which helped Scotiabank secure a 4.9% stake in KeyCorp, was completed in August. 

KeyCorp has a presence across 15 states and operates around 1,000 branches.  

It provides a suite of services, including commercial and retail banking, in addition to investment advice. 

Scotiabank anticipates that this investment will positively impact its earnings per share in the first year following the completion of the additional investment.  

Under the agreement, Scotiabank can nominate two individuals to KeyCorp’s board of directors, including a senior officer and an independent third-party director, pending KeyCorp’s consent. 

Last month, Scotiabank appointed Steven Van Wyk to its board of directors, with immediate effect. 

Scotiabank, a provider of financial services including personal and commercial banking, wealth management, private banking, corporate and investment banking, and capital markets, has assets worth nearly $1.4tn as of 31 July 2024. 

The bank is listed on both the Toronto Stock Exchange and New York Stock Exchange. 

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Fairfax Financial has finalised the acquisition of the remaining 13.8% stake in Brit from OMERS, the pension plan for Ontario’s municipal employees.  

The transaction, valued at approximately $383m (C$546.1m), brings Fairfax’s ownership of Brit to 100%, which held 86.2% by acquiring the interest of OMERS. 

OMERS, with a history spanning more than 60 years, has been providing secure lifetime pensions to its members in Ontario.  

The pension plan boasts a team of investors and professionals, with a net asset value of $133.6bn as of 30 June 2024, marking it as one of Canada’s largest defined benefit pension plans. 

Recently, Brit and Ki announced that Ki will begin operating as an independent entity within the Fairfax Group from 1 January 2025. Ki, established by Brit in 2020 and running as Syndicate 1618 at Lloyd’s since 2021, is recognised as the fully digital follow syndicate in the industry. 

Fairfax, headquartered in Toronto, is a conglomerate with a primary focus on P&C insurance, reinsurance and investment management.  

In the third quarter of 2024, Fairfax reported net earnings of $1.03bn, equating to $42.62 net earnings per diluted share after preferred share dividends.  

This performance was largely due to increased adjusted operating income of $1.13bn and net gains on investments.  

As of 30 September 2024, the company’s book value per basic share stood at $1,033.18, a notable increase from $939.65 on 31 December 2023, even after accounting for a common share dividend of $15 paid earlier in the year. 

Earlier this year, Fairfax acquired, through its insurance company subsidiaries, 271,100 common shares of Ensign Energy Services for an aggregate purchase price of approximately C$657,092 through the facilities of the Toronto Stock Exchange. 

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