Definity to Become Canada’s No. 4 P&C Insurer

Definity Financial has agreed to acquire the Canadian personal and most commercial insurance operations of Travelers Companies for approximately $2.4 billion, a move that will make Definity the fourth-largest property and casualty insurer in Canada with an additional C$1.6 billion in annual premiums. The deal, valued at 1.8 times book value after accounting for $800 million in excess capital repatriation, is set to close in early 2026 pending regulatory approval. Definity will retain all of Travelers’ 1,400 Canadian employees, ensuring job continuity and uninterrupted service for policyholders, while Travelers will keep its Canadian surety business. The acquisition is expected to accelerate industry consolidation as insurers seek greater scale to invest in technology and respond to rising claims from climate-related catastrophes. Both companies anticipate that the transaction will be accretive to earnings per share. Travelers plans to use part of the proceeds for share repurchases and ongoing operations.