Travelers Companies Divests Canadian Insurance Units to Definity Financial

On January 5, 2026, Travelers Companies, Inc. announced the completion of its divestment of Canadian personal and most commercial insurance units to Definity Financial Corporation, which marks a significant shift in the company’s strategic focus within the property and casualty insurance sector. The transaction, which amounts to a noteworthy $2.4 billion, was initially disclosed in May 2025. Importantly, Travelers will retain its robust surety operations in Canada, ensuring continued presence in the market.

As part of this strategic decision, Travelers plans to utilize approximately $700 million from the net proceeds for share repurchases in 2026, strengthening shareholder value. The remaining funds will be dedicated to maintaining regulatory compliance requirements and supporting ongoing business operations. The company projects that these transactions, along with the share repurchases, will favorably influence earnings per share in both the immediate and long-term financial periods.

Jefferies LLC and Przygoda & Co. LLC provided financial advisory services for this transaction, ensuring all underwriting and risk management processes met industry standards. Legal oversight was managed by Skadden, Arps, Slate, Meagher & Flom LLP and Stikeman Elliott LLP, guaranteeing compliance with regulatory frameworks.