05:29 PM EDT, 04/04/2024 (MT Newswires) -- Definity Financial ( DFYFF ) on Thursday said its board of directors approved the adoption of a shareholder rights plan, used to deflect a hostile takeover of the company.

The property, and casualty insurance company said the rights plan is substantially similar to strategic shareholder rights plans in place at other Canadian public companies, issuing new shares to existing shareholders in the event of a non-approved bid for the company..

While the rights plan is effective immediately, it is subject to ratification and approval by Definity's shareholders at its May 17 annual meeting.