Definity Financial has completed the acquisition of the personal insurance and most of the commercial insurance operations of The Travelers Companies in Canada for nearly C$3.3 bn in cash.
The transaction excludes the Canadian surety segment. What transfers to Definity includes the personal lines business and the bulk of Travelers Canada’s commercial insurance portfolio, leaving surety operations outside the deal perimeter.
Travelers Canada generates roughly C$1.6 bn in annual gross written premiums and operates as a national property and casualty insurer with a diversified book. Definity said the acquisition materially reshapes its scale in the domestic market.
Definity financed the transaction through a mix of capital sources. Funding included C$281 mn raised via a bought-deal private placement, C$70 mn from a private placement with the Healthcare of Ontario Pension Plan, C$1.5 bn drawn from excess capital, and C$1.6 bn in new debt.
Following completion, Definity plans to divest around C$1 bn of excess capital to repay a term loan, subject to regulatory approval.
When the deal was announced, Definity said the combined business would place it among Canada’s five largest P&C insurers, with annual premiums of about C$6 bn.
Rowan Saunders, President and chief executive officer of Definity, said the closing marks a turning point for the group.
He said the company welcomes new colleagues and remains focused on delivering consistent service to customers and broker partners, while continuing to build a Canadian-focused insurer with national scale.
We extend a warm welcome to our new colleagues and remain deeply committed to delivering a positive experience for our customers and valued broker partners. Together, we will continue building a Canadian champion.
Rowan Saunders, President and CEO of Definity
RBC Capital Markets acted as financial adviser to Definity, with legal advice provided by Blake, Cassels & Graydon.
Travelers said it plans to allocate about $700 mn from the sale proceeds toward share buybacks in 2026. Remaining funds support ongoing operations and general corporate purposes.
The company expects the transaction to be slightly accretive to earnings per share from 2026 onward.
Travelers received financial advice from Jefferies and Przygoda & Co., with legal counsel from Skadden, Arps, Slate, Meagher & Flom and Stikeman Elliott.
For the 12 months ended 30 September 2025, Definity reported gross written premiums exceeding $4.7 bn. Equity attributable to common shareholders stood at more than $4 bn, underscoring the balance sheet capacity behind the transaction.
