Property and casualty insurer The Travelers Cos. Inc., which was founded in Hartford and has a large office presence in the city’s downtown, is selling its Canadian arm for about $2.4 billion.
Travelers announced Tuesday that it had signed a definitive agreement to sell Travelers Canada’s personal insurance business and the majority of its commercial insurance business to Definity Financial Corp.
Definity, based in Waterloo, Canada, is a leading property and casualty insurer in Canada with more than $4.5 billion in gross written premiums as of March 31.
The transaction is expected to close in early 2026.
Travelers will continue to own its Canadian surety business, which is not part of the sale.
“This transaction is a reflection of our steadfast commitment to disciplined capital allocation and long-term value creation,” said Alan Schnitzer, chairman and CEO of Travelers. “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.”
Travelers said it plans to use roughly $700 million of net cash proceeds from the transaction for additional share repurchases in 2026. The remainder of the cash proceeds will be used to support operations and for general corporate purposes, according to the company.
Travelers, which has more than 30,000 employees, generated revenue of more than $46 billion in 2024.
Shares of Travelers’ stock were trading at $275.88 Wednesday morning, close to the company’s 52-week high price of $276.21.
