Toronto, Ontario -- Canada's insurance sector is about to become more consolidated.
According to a press release, Definity Financial Corp. is acquiring the Canadian operations of The Travelers Co. Inc. for $3.3 billion. The agreement includes Travelers Insurance Co. of Canada and the Dominion of Canada General Insurance Co., both of which offer personal, automotive and commercial insurance.
Established in 2021, Definity Financial is a Canadian property and casualty insurer headquartered in Waterloo, Ontario. It operates through several brands and offers a range of products such as auto, home, commercial and pet insurance.
The deal is expected to close in the first quarter of 2026 and is subject to regulatory approvals and customary closing conditions.
Definity also announced $351 million in private placements of common shares to help finance the acquisition. The Ontario Teachers’ Pension Plan and the Healthcare of Ontario Pension Plan will each invest $100 million, while Swiss Re Investments Holding Company Ltd. will contribute $50 million. A Definity subsidiary will invest the remaining $101 million.
The acquisition will significantly expand Definity’s market presence in for auto and commercial insurance.
