On May 27, 2025, Definity Financial Corporation announced it would acquire the Canadian operations of Travelers, excluding its Canadian surety business ("Travelers Canada"), for approximately C$3.3 billion. The transaction, which closed on January 2, 2026, positions Definity as the fourth-largest property and casualty insurer in Canada, with approximately C$6 billion in combined annual premiums. It is expected to be immediately accretive to operating EPS, deliver double-digit accretion within 36 months, and generate an internal rate of return exceeding 20%. The acquisition is projected to yield C$100 million in pre-tax run-rate expense synergies and over 200 basis points of improvement in operating ROE, supporting a long-term mid-teens return target.

Definity acquired Travelers Insurance Company of Canada and The Dominion of Canada General Insurance Company, while Travelers retained its surety business and other select assets. The transaction was financed through C$1.5 billion in excess capital, C$1.6 billion in new debt, a C$281 million bought deal private placement led by RBC Capital Markets, and a C$70 million private placement from the Healthcare of Ontario Pension Plan Trust Fund (HOOPP).

RBC Capital Markets acted as financial advisor and Blake, Cassels & Graydon LLP as legal advisor to Definity. Jefferies LLC advised Travelers, with legal counsel provided by Skadden, Arps, Slate, Meagher & Flom LLP and Stikeman Elliott LLP. The deal reinforces Definity's growth strategy, enhances commercial and personal lines scale, and deepens broker relationships.