Deal adds $1.6bn in premiums and lifts Definity to fourth among Canadian P&C insurers by 2026
Definity Financial Corp. will acquire the Canadian operations of US-based Travelers for $3.3bn, a transaction that significantly boosts its market share and brings its annual gross written premiums to $6bn.
The deal, accoridng to The Globe and Mail, is set to move Definity from sixth to fourth among Canadian property and casualty (P&C) insurers.
Definity expects to close the acquisition in the first quarter of 2026, pending regulatory and Competition Bureau approval.
The transaction will see Definity absorb most of Travelers’ Canadian operations, adding $1.6bn in annual gross written premiums and integrating more than 1,400 employees from locations across Vancouver, Calgary, Toronto, Ottawa, and Montreal.
The acquisition financing includes $1.5bn from Travelers’ balance sheet and Definity’s own reserves, along with $1.6bn in new debt.
A further $281m was raised from a public share offering, with an additional $70m through a private sale to the Healthcare of Ontario Pension Plan Trust Fund (HOOPP), a significant institutional shareholder.
The equity offering was priced at $66.65 per share.
CEO Rowan Saunders said the transaction marks a strategic step in building a Canadian-owned insurer with national reach. “This is a big step in our journey to build a Canadian champion,” Saunders said.
He added that the company has expanded organically at twice the industry pace, and this acquisition supports a broader consolidation strategy since its 2021 public listing.
The deal also reinforces Definity’s role as an employer.
Saunders said the company will retain all Travelers employees and unify the operations under one brand.
Travelers will retain only its Canadian surety business.
Travelers CEO Alan Schnitzer said the decision reflects changing market dynamics.
“The evolution of the Canadian market over the past decade has made Definity a natural long-term owner for this business,” Schnitzer said, citing the proposal’s “compelling value.”
He added that brokers, clients, and staff will benefit from being part of a fully integrated Canadian insurer.
The deal adds $600m in annual premiums to Definity’s commercial lines and introduces specialty coverages, including marine, cyber, and professional liability insurance.
In personal insurance, Travelers will contribute approximately $1bn in premiums—a 30 percent increase for Definity.
Discussions between the companies began more than a year ago in New York.
Saunders said Travelers recognised that achieving scale in Canada would be difficult, prompting them to consider alternatives.
He avoided a competitive auction and instead offered “deal certainty” and what he described as an “appropriate” valuation.
“This is a transformative acquisition that is squarely in line with the growth strategy we’ve set for Definity,” Saunders said.
He added that the deal reflects the company’s long-term focus on growth and competitiveness, while also expanding its national reach and strengthening ties with brokers and customers.
Since going public, Definity has completed more than 20 transactions and invested over $1bn to enhance technology and distribution, aligning with the long-term priorities of institutional investors and pension stakeholders.
Definity currently operates several brands, including Family Insurance Solutions Inc., Petline Insurance Co., and Sonnet Insurance Co., a digital platform that sells insurance directly to consumers.
Saunders said the deal reflects a broader trend in the Canadian insurance industry.
He noted that “if a big, strong, North American company like Travelers feels scale is importance and therefore decided to sell their Canadian business, there are many other international players that are much smaller that must be thinking the same thing.”
He added, “what we have shown here is that we are a serious and capable consolidator in Canada.”
