The Travelers Companies said it has agreed to buy cyber managing general underwriter Corvus Insurance Holdings Inc. for about $435 million for its middle-market excess and surplus lines presence.

“This transaction accelerates our access to cutting-edge cyber capabilities that were on our strategic road map, including sophisticated underwriting algorithms, advanced cyber vulnerability scanning, and digital connectivity to customers and distribution partners,” said Alan Schnitzer, chairman and CEO of Travelers.

The move comes following a September announcement that Travelers would serve as a capacity provider for Corvus products in the U.S. starting Oct. 1. The companies reached a similar agreement in 2022 for the European market.

Travelers said the deal is expected to close in the first quarter of 2024 and should have an immaterial impact to earnings in the near term.

Jeff Klenk, president of bond and specialty insurance at Travelers, said the insurer will have the opportunity to renew Corvus’ book of business of more than $200 million.

“We will leverage Corvus’ leading capabilities to enhance the return profile of our already attractive cyber portfolio,” Klenk said. “We have a strong working relationship with the Corvus team through our existing cyber capacity arrangements in the United States and Europe, and we are thrilled to have them join the Travelers family.”

Corvus’ artificial intelligence-driven platform identifies vulnerabilities throughout the policy period to reduce customers’ exposure to cyber events, and it delivers distribution efficiencies to insurance agents and brokers.

“At Corvus we have been building a safer world through cyber insurance products and digital tools that reduce risk and improve resilience for policyholders,” said Madhu Tadikonda, Corvus CEO. “We are excited for the opportunity to contribute our capabilities and knowledge to Travelers. Our complementary cultures and strong commitment to innovation make this transaction an excellent fit.”

Late last month, Corvus released a report that found ransomware attacks are up globally more than 95 percent.