The Travelers Companies, Inc. signed a definitive agreement to sell its Canadian personal insurance business and the majority of its Canadian commercial insurance business to Definity Financial Corporation for approximately US$2.4 billion. Travelers will retain its market-leading Canadian surety business.
The purchase price represents a multiple of 1.8 times book value, adjusted for approximately US$0.8 billion of excess local capital being repatriated. Travelers expects to allocate about $0.7 billion of the net cash proceeds for additional share repurchases in 2026, with the remainder supporting ongoing operations and general corporate purposes.
The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals and customary closing conditions. This divestiture is anticipated to be slightly accretive to the company’s earnings per share in each of the next several years, reflecting a disciplined capital allocation strategy.
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