The Travelers Companies, Inc. announced that it has signed a definitive agreement to sell Travelers Canada’s personal insurance business and the majority of its commercial insurance business to Definity Financial Corporation for roughly $2.4 billion.

Travelers, which said it ranks as the largest surety writer in North America, will retain its Canadian surety business.

The purchase price for the personal and remaining commercial business represents a multiple of 1.8 times book value, adjusting for approximately $0.8 billion of excess local capital which is being repatriated as part of this transaction in a tax-efficient manner, Travelers said in a media statement.

The deal is expected to close in the first quarter of 2026, subject to regulatory approvals and other customary closing conditions.

“This transaction is a reflection of our steadfast commitment to disciplined capital allocation and long-term value creation,” said Alan Schnitzer, Chairman and Chief Executive Officer of Travelers, in the media statement.

Travelers expects to use approximately $0.7 billion of the net cash proceeds of the transaction for additional share repurchases in 2026, while retaining the remainder to support ongoing operations and for general corporate purposes.

The transaction and resulting share repurchases are expected to be slightly accretive to the company’s earnings per share in each of the next several years.

Schnitzer said, “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. 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.”

Jefferies LLC acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP and Stikeman Elliott LLP served as legal advisors to Travelers in this transaction.

Source: Travelers