Definity Financial Corp. to Acquire Travelers’ Canadian Operations for $3.3 Billion
Definity Financial Corp. is poised to acquire the majority of Travelers’ Canadian operations for $3.3 billion, a move that will significantly elevate its position in Canada’s property and casualty (P&C) insurance market. The acquisition, pending regulatory and Competition Bureau approval, is expected to close in the first quarter of 2026.
The deal will catapult Definity to fourth place among P&C insurers in Canada, up from its current sixth position, according to The Globe and Mail. The acquisition will add $1.6 billion in annual gross written premiums, bringing Definity’s total to $6 billion. The company’s chief executive, Rowan Saunders, described the move as “a big step in our journey to build a Canadian champion.”
Definity plans to integrate Travelers Canada’s operations under one brand while retaining all employees. Travelers will continue to operate its Canadian surety business. The acquisition will be financed through a combination of $1.5 billion from Travelers’ balance sheet and internal reserves, $1.6 billion in new debt, a $281 million public equity sale, and a $70 million share sale to the Healthcare of Ontario Pension Plan Trust Fund (HOOPP), a significant Definity shareholder. Shares will be issued at $66.65 each.
The deal is expected to expand Definity’s commercial insurance by $600 million in annual premiums and introduce new specialty lines, including marine, cyber, and professional liability insurance. In personal insurance, Travelers will contribute approximately $1 billion in premiums, representing a 30% increase over current levels. Saunders noted that the acquisition supports long-term growth while strengthening broker relationships and broadening customer reach.
“It demonstrates our commitment to long-term growth and competitiveness, while broadening our reach and deepening relationships with brokers and customers across the country,” Saunders said. Travelers Companies Inc., headquartered in New York, entered the Canadian market in 2013 with its $1.1 billion acquisition of The Dominion of Canada General Insurance Company. Since then, it has grown to employ over 1,400 people across five cities: Vancouver, Calgary, Toronto, Ottawa, and Montreal.
Travelers chair and CEO Alan Schnitzer stated, “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.” He added, “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.”
Definity currently operates through brands such as Family Insurance Solutions Inc., Petline Insurance Co., and Sonnet Insurance Co., a digital direct-to-consumer platform. Since going public in November 2021, it has completed over 20 transactions totaling more than $1 billion to expand its broker distribution network and technology.
Saunders emphasized that the acquisition aligns with the vision laid out at the time of Definity’s initial public offering (IPO), when the company ranked eighth in Canada. He noted that consolidation remains a significant trend in the Canadian insurance market, with over 100 insurance companies still operating. The deal demonstrates Definity’s capability as a consolidator in the Canadian market.
