As of January 2, Travelers has completed the sale of the personal insurance business and a majority of the commercial lines business of Travelers Canada to Definity Financial Corporation for approximately $2.4 billion (USD). The company will retain its surety business in Canada.
The purchase price, Travelers says, represents a multiple of 1.8 times book value, with adjustments for approximately $800 million of excess local capital that is being repatriated as part of the transaction in a tax-efficient manner.
The sale was announced in May 2025 when Travelers signed a definitive agreement to sell these insurance arms to Definity.
“This transaction is a reflection of our steadfast commitment to disciplined capital allocation and long-term value creation,” Alan Schnitzer, chairman and chief executive officer of Travelers, said in a release. “The evolution of the Canadian market over the past decade has made Definity a natural long-term owner for this business, a view affirmed by the compelling value of their proposal. I am confident that our Canadian customers, brokers and colleagues will benefit from being part of one of the country’s leading and fully integrated property casualty insurers.”
Travelers expects to use an estimated $700 million of the net cash proceeds from the sale for additional share repurchases in 2026. It will retain the remainder of the funds to support ongoing operations and for general corporate purposes.
Definity is a leading property and casualty insurance company in Canada, with over $4.7 billion in written gross premiums from September 2024 through September 2025.
“Today marks a new era for Definity as we complete this milestone acquisition,” Rowan Saunders, president & CEO of Definity, said in a release. “We extend a warm welcome to our new colleagues and remain deeply committed to delivering a positive experience for our customers and valued broker partners. Together, we will continue building a Canadian champion.”
Jefferies LLC and Przygoda & Co. LLC acted as financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP and Stikeman Elliott LLP served as legal advisors to Travelers in this transaction.
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