Travelers to Sell Major Canadian Assets to Definity for $2.4 Billion

Travelers Companies, Inc., a major property and casualty insurer, has entered into an agreement to divest its personal and most of its commercial insurance business in Canada to Definity Financial Corporation for about $2.4 billion. This strategic deal, expected to conclude in the first quarter of 2026 pending regulatory approval, involves a purchase price with a 1.8 times book value multiple adjusted for $0.8 billion in excess local capital. The transaction signifies Travelers' commitment to efficient capital allocation, with plans to use $0.7 billion of the proceeds for share repurchases and the remainder for general corporate purposes. Travelers will continue its Canadian surety business. Jefferies LLC served as the financial advisor, while Skadden, Arps, Slate, Meagher & Flom LLP and Stikeman Elliott LLP provided legal advisory services.