Travelers (NYSE: TRV) completes $2.4 billion sale of Canadian insurance business

The Travelers Companies, Inc. (NYSE: TRV) completed the sale of its Canadian personal insurance business and majority of its Canadian commercial insurance business to Definity Financial Corporation (DFY) for approximately $2.4 billion.

The transaction, which was previously announced, allows Travelers to retain its Canadian surety business. The company describes itself as the largest surety writer in North America.

Travelers plans to allocate approximately $700 million of the net cash proceeds toward additional share repurchases in 2026. The remaining funds will support ongoing operations and general corporate purposes, according to a company statement.

The insurer expects the transaction and resulting share repurchases to be slightly accretive to earnings per share in 2026 and subsequent years.

Jefferies LLC and Przygoda & Co. LLC served as financial advisors for the transaction, while Skadden, Arps, Slate, Meagher & Flom LLP and Stikeman Elliott LLP provided legal counsel to Travelers.