Travelers Cos.
said on Tuesday it has agreed to sell its Canadian personal insurance b
usiness and majority
of its commercial insurance operations in the count
ry to Definity Financial in a deal valued at $2.4 billion.
The transaction adds
to a wave of consolidation in the North American insurance sector as firm
s streamline operation
s and sharpen geographic focus amid rising capital costs
and evolving regulatory demands.
By selling its Canadi
an personal and commercial insurance units, Travelers joins other global insu
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rers in reshaping portf
olios to prioritize profitability and scale in core markets.
Definity said the dea
l will establish it as th
e fourth-largest property and casualty insurer in Canada, with the transa
ction immediately accretive to its operating earnings per share.
The company also expects the acquisition, expected to close in the first qu
arter of 2026, to add roughly $1 billion in annual premiums to its personal lines business.
RBC Capital Market
s is acting as Definity’s financial adviser, while Jefferies LLC advised Travelers on the deal.
(Reporting by Manya Saini in Bengaluru; editing by Shounak Dasgupta)