The Travelers Companies has reached an agreement to buy The Dominion of Canada General Insurance Company from E-L Financial, in a cash transaction valued at nearly $1.1bn, subject to adjustment.
Following the merger of Travelers’ Canadian operations, the integrated entity will remain headquartered in Toronto and continue to provide an array of insurance products to customers and brokers.
Commenting on the deal, Travelers chairman and CEO Jay Fishman said that the acquisition beyond the US market presents an opportunity for the company to improve its position and scale in a meaningful market.
Travelers Financial, professional & international insurance business segment vice chairman and head Alan Schnitzer said, "The Dominion’s extensive distribution network and established customer base provide us with an exceptional platform for expanding our commercial lines business and generally strengthening our presence in Canada."
"The combined business will benefit from Travelers’ sophistication in the use of data and analytics as well as claim and risk control capabilities," Schnitzer added.
Current Dominion president and CEO Brigid Murphy will continue in his roles at the united company, while Travelers Canada president and CEO George Petropoulos will assume the post of vice chairman at the new organization.
Subject to approvals from the concerned regulatory authorities as well as satisfying other customary closing conditions, the transaction is likely to conclude during the fourth quarter of 2013.
Skadden, Arps, Slate, Meagher & Flom and Gowling Lafleur Henderson acted as legal advisors to Travelers.