Definity completes purchase of Travelers’ Canadian insurance businesses

Definity Financial has concluded its acquisition of the idiosyncratic security and astir of the commercialized security operations of the Travelers Companies successful Canada for astir C$3.3bn successful cash.

The transaction, agreed successful May, excludes the surety segment.

At the clip of the deal’s announcement, Definity said the acquisition makes it 1 of Canada’s apical 5 spot and casualty (P&C) insurers, with combined yearly premiums of astir C$6bn.

Definity CEO and president Rowan Saunders said: “Today marks a caller epoch for Definity arsenic we implicit this milestone acquisition.

“We widen a lukewarm invited to our caller colleagues and stay profoundly committed to delivering a affirmative acquisition for our customers and valued broker partners. Together, we volition proceed gathering a Canadian champion.”

RBC Capital Markets provided fiscal proposal to Definity connected the transaction, portion ineligible counsel was supplied by Blake, Cassels & Graydon.

Travelers plans to allocate astir $700m from the proceeds for stock buybacks successful 2026.

The remaining funds are intended to enactment ongoing concern activities and wide firm needs.

The institution expects these actions to beryllium “slightly” accretive to its net per stock from 2026 onwards.

Jefferies and Przygoda & Co. served arsenic fiscal advisors to Travelers successful this transaction, portion ineligible counsel was provided by Skadden, Arps, Slate, Meagher & Flom and Stikeman Elliott.

For the 12 months ending 30 September 2025, Definity reported gross written premiums exceeding $4.7bn, portion equity attributable to communal shareholders stood astatine much than $4bn.

"Definity completes acquisition of Travelers’ Canadian security businesses " was primitively created and published by Life Insurance International, a GlobalData owned brand.

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