The Canada Pension Plan Investment Board substantially increased its stakes in several big-name insurance companies and banks in the fourth quarter of 2019.
A Form 13F filing shows that CPPIB's position in health insurer Humana Inc. skyrocketed to $92.4 million at the end of 2019, up from just $202,000 a quarter earlier. The group owned less than 1,000 shares at the end of the third quarter of 2019; that was up to more than 252,000 by the end of the following quarter. CPPIB also benefited from a dramatic spike in Humana's stock price during the period.
The pension board also increased its ownership in American International Group Inc. shares by more than 200% quarter over quarter. The market value of its investment in AIG stood at $26.4 million as of the end of 2019.
Even as it snapped up Humana's stock, the Canadian fund manager sold one-fourth of its stake in the now-acquired WellCare Health Plans Inc. and sharply cut its holdings in WellCare's buyer, Centene Corp. As of the end of last year, CPPIB reported a $474,000 stake in Centene, down from $11.7 million at the end of the third quarter of 2019.
CPPIB also substantially pared back on its stake in managed care giant UnitedHealth Group Inc. and reduced its ownership in Radian Group Inc.'s stock by 41.8%.
In the banking sector, CPPIB saw dramatic increases in its positions in two U.S. superregional banks, Truist Financial Corp. and PNC Financial Services Group Inc.
The deal to combine BB&T Corp. and SunTrust Banks Inc. banks created Truist Financial, which became one of CPPIB's largest depository institution holdings at $278.5 million as of Dec. 31, 2019. At the end of September 2019, CPPIB reported investments in BB&T Corp. and SunTrust valued at $4.3 million and $22.4 million, respectively.
The Canadian manager boosted its ownership in PNC's stock by more than 400% quarter over quarter. As of the end of 2019, the market value of its investment in PNC's common shares stood at $160.5 million.
Overall, CPPIB's total common stock portfolio was valued at $41.0 billion as of Dec. 31, 2019, an increase of 2.06% from the end of the prior quarter.
