Cyber insurtech Corvus Insurance Holdings has agreed to a $435 mn deal to be acquired by P&C insurance giant Travelers, which has approximately 30,000 employees and generates revenues in excess of $35 bn a year, will fund the acquisition from internal resources.
The transaction, slated to close in the first quarter of 2024 pending regulatory approvals and customary closing conditions, marks a significant move by Travelers to enhance its cyber capabilities through the acquisition of the industry-leading cyber insurance managing general underwriter, Corvus.
Founded in 2017, Corvus is a cyber insurance managing general underwriter that uses a proprietary AI-driven cyber risk platform to help customers identify vulnerabilities, thus reducing their exposure to cyber events.
It is led by Madhu Tadikonda, who has experience at AIG and Oliver Wyman; and was founded by Phil Edmundson and Mike Lloyd.
Cyber insurtech brings to the table a robust suite of integrated cyber sales, service, and support capabilities powered by a risk platform. The company has established itself as a key player in the middle-market excess and surplus cyber insurance marketplace, serving wholesale brokers and large retail producers.
This transaction accelerates our access to cutting-edge cyber capabilities that were on our strategic roadmap, including sophisticated underwriting algorithms, advanced cyber vulnerability scanning and other risk management tools, and digital connectivity to distribution partners and customers.Alan Schnitzer, Chairman and Chief Executive Officer of Travelers
The acquisition aligns with Travelers’ commitment to extending its risk expertise, leveraging Corvus’ technology to enhance its cyber portfolio.
Madhu Tadikonda, Chief Executive Officer of Corvus, said, “At Corvus we have been building a safer world through cyber insurance products and digital tools that reduce risk, increase transparency and improve resilience for policyholders.”
Jeff Klenk, Executive Vice President and President of Bond & Specialty Insurance at Travelers, said the powerful combination of Corvus’ expertise in excess and surplus lines for cyber with Travelers’ industry-leading distribution position in the admitted markets.
Corvus’ expertise in excess and surplus lines for cyber, along with our industry-leading distribution position in the admitted markets, is a powerful combinationJeff Klenk, Executive Vice President and President of Bond & Specialty Insurance at Travelers
“In addition to having the opportunity to renew Corvus’ $200+ million book of business, we will leverage Corvus’ leading capabilities to enhance the loss profile of our existing cyber portfolio. We have a strong working relationship with the Corvus team through our existing cyber capacity arrangements in the United States and Europe, and we are thrilled to have them join the Travelers family.”
Jefferies LLC acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel to Travelers in this transaction.
Nomura Securities International, Inc. acted as financial advisor and Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP provided legal counsel to Corvus in the transaction.
The transaction, funded by Travelers from internal resources, is expected to have an immaterial impact on earnings in the near term.
Corvus Insurance is a prominent cyber underwriter specialising in providing innovative insurance solutions. With a strong focus on leveraging advanced technologies, Corvus aims to protect businesses from cyber risks and empower underwriters through streamlined and efficient platforms.