$3.3bn acquisition moves Definity to fourth in Canadian P&C rankings, pending regulatory approval
Definity Financial Corp. will acquire most of Travelers’ Canadian operations for $3.3bn, adding $1.6bn in annual gross written premiums and increasing its total to $6bn.
The deal will elevate Definity to fourth place among property and casualty insurers in Canada, up from its current sixth position, as reported by The Globe and Mail.
Definity will integrate Travelers Canada’s operations under one brand and retain all employees. Travelers will continue operating its Canadian surety business.
The acquisition is pending regulatory and Competition Bureau approval and is expected to close in the first quarter of 2026.
Definity chief executive Rowan Saunders said, “This is a big step in our journey to build a Canadian champion.”
He added that Definity has grown organically at twice the industry rate and that its public listing in 2021 was designed to enable acquisitions in a consolidating market.
The purchase will be financed through $1.5bn from Travelers’ balance sheet and internal reserves, $1.6bn in new debt, a $281m public equity sale, and a $70m share sale to the Healthcare of Ontario Pension Plan Trust Fund (HOOPP), a significant Definity shareholder.
Shares will be issued at $66.65 each.
If approved, the deal will expand Definity’s commercial insurance by $600m in annual premiums and introduce new specialty lines including marine, cyber, and professional liability insurance.
In personal insurance, Travelers will contribute approximately $1bn in premiums—an increase of 30 percent over current levels.
According to Saunders, the deal supports long-term growth while strengthening broker relationships and broadening customer reach.
“It demonstrates our commitment to long-term growth and competitiveness, while broadening our reach and deepening relationships with brokers and customers across the country,” he said.
Travelers Companies Inc., headquartered in New York, entered the Canadian market in 2013 with its $1.1bn acquisition of The Dominion of Canada General Insurance Company.
Since then, it has grown to employ over 1,400 people across five cities: Vancouver, Calgary, Toronto, Ottawa and Montreal.
Travelers chair and CEO Alan Schnitzer stated, “The evolution of the Canadian market over the past decade has made Definity a natural long-term owner for this business, a view affirmed by the compelling value of their proposal.”
He added, “I am confident that our Canadian customers, brokers and colleagues will benefit from being part of one of the country’s leading and fully integrated property casualty insurers.”
Definity currently operates through brands such as Family Insurance Solutions Inc., Petline Insurance Co., and Sonnet Insurance Co., a digital direct-to-consumer platform.
Since going public in November 2021, it has completed over 20 transactions totalling more than $1bn to expand its broker distribution network and technology.
Saunders said the acquisition aligns with the vision laid out at the time of the IPO, when Definity ranked eighth in Canada.
Discussions with Travelers began over a year ago in New York, leading to an agreement without a public auction.
Saunders said the deal offered Travelers both “appropriate” valuation and “deal certainty” for employees.
“This is a transformative acquisition that is squarely in line with the growth strategy we’ve set for Definity,” he said.
Saunders added that with over 100 insurance companies still operating in Canada, consolidation remains a significant trend.
He said that if a major North American company like Travelers believes scale is important enough to justify exiting the Canadian market, then smaller international firms are likely asking the same question.
“And what we have shown here is that we are a serious and capable consolidator in Canada,” he added.
