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Definity Financial Corporation Announces Agreement to Acquire Canadian Operations of Travelers for $3.3 billion and Concurrent $351 million Private Placements of Common Shares
Definity Financial Corporation Announces Agreement to Acquire Canadian Operations of Travelers fo...
About this update from Definity Financial Corp.
[{"type":"text","content":"\n\n\n\n Definity Financial Corporation Announces Agreement to Acquire Canadian Operations of Travelers for $3.3 billion and Concurrent $351 million Private Placements of Common Shares\n \n\n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prngen2{\nPADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; BORDER-TOP:black 0pt; BORDER-RIGHT:black 0pt; BORDER-BOTTOM:black 0pt; BORDER-LEFT:black 0pt\n}\n.prnml4{\nMARGIN-TOP:0em; MARGIN-RIGHT:0em; MARGIN-BOTTOM:0em; MARGIN-LEFT:0.33em !IMPORTANT\n}\n.prnbcc{\nBORDER-COLLAPSE: COLLAPSE\n}\n \n\n\n\n\n\n Canada NewsWire\n \n\n\n\n /NOT FOR DISTRIBUTION TO THE U.S. NEWS WIRE SERVICES OR DISSEMINATION IN\n \n THE UNITED STATES\n \n /\n \n\n\n Building a Canadian Champion\n \n\n\n\n Definity to acquire Canadian operations of Travelers for\n \n $3.3 billion\n \n\n 1\n \n , representing ~1.4x P/B\n \n 2\n \n\n\n Establishes Definity as the #4 overall P&C insurer in\n \n Canada\n \n , strengthening leadership position in the broker channel, and delivering on financial objectives and inorganic growth strategy\n \n\n Immediately accretive to operating EPS\n \n 3\n \n , expected to reach double-digits within 36 months of close; internal rate of return in excess of 20%\n \n 4\n \n\n\n Significant value creation opportunity through scale benefits with estimated run-rate expense synergies of\n \n ~$100 million\n \n (pre-tax), before considering loss cost improvements\n \n\n Effectively delivers on operating ROE\n \n 3\n \n target, with an expected improvement of over 200 bps on a run-rate basis, enabling Definity to sustainably target mid-teens post integration\n \n\n Optimizes balance sheet via strategic deployment of excess capital and utilization of significant financial leverage capacity\n \n\n\n\n\n WATERLOO, ON\n \n\n ,\n \n\n May 27, 2025\n \n\n /CNW/ -\n \n Definity Financial Corporation\n \n (\"Definity\" or the \"Company\") (TSX: DFY) announced today that it has entered into a definitive agreement with Travelers (\"Travelers\") to acquire Canadian operations of Travelers (other than Travelers' Canadian surety business) for cash ...