Travelers to Sell Canadian Insurance Business to Definity for $2.4 Billion
The Travelers Companies, Inc. (NYSE: TRV) has entered into a definitive agreement to sell its Canadian personal insurance business and majority of its Canadian commercial insurance business to Definity Financial Corporation (TSX: DFY) for approximately $2.4 billion. The transaction, expected to close in the first quarter of 2026, is subject to regulatory approvals and customary closing conditions.
Travelers will retain its market-leading surety business in Canada. The sale price represents a multiple of 1.8 times book value, with approximately $800 million of excess local capital being repatriated as part of the transaction. “This transaction reflects our commitment to disciplined capital allocation and long-term value creation,” said Alan Schnitzer, Chairman and CEO of Travelers.
The company plans to use approximately $700 million of the net cash proceeds for additional share repurchases in 2026, with the remainder supporting ongoing operations and general corporate purposes. The transaction and resulting share repurchases are expected to be slightly accretive to the company’s earnings per share in the coming years.
Travelers, a leading provider of property casualty insurance, has over 30,000 employees and generated more than $46 billion in revenues in 2024. The company will continue to focus on its core business while adapting to market changes.
Transaction Details
- Sale price: $2.4 billion
- Multiple: 1.8 times book value
- Excess capital repatriated: $800 million
- Expected closing: First quarter 2026
- Retained business: Canadian surety business
Jefferies LLC acted as financial advisor, while Skadden, Arps, Slate, Meagher & Flom LLP and Stikeman Elliott LLP served as legal advisors to Travelers. The transaction is subject to regulatory approvals and other customary closing conditions.
