Travelers divests Canadian operations for 2.4 billion ranking 313th in trading volume

On May 29, 2025, The's trading volume was 2.93 billion, a decrease of 34.95% from the previous day, ranking 313th in the day's stock market trading volume.

The Travelers Companies (TRV) has announced an agreement to divest its personal insurance segment and most of its commercial insurance operations in Canada to Definity Financial Corp. This strategic move is part of Travelers' commitment to disciplined capital allocation and long-term value creation. The transaction, valued at approximately $2.4 billion, is expected to close in the first quarter of 2026, subject to regulatory approvals and other customary closing conditions. The purchase price represents a multiple of 1.8 times book value, adjusting for approximately $800 million of excess local capital which is being repatriated in a tax-efficient manner. Travelers will retain its premier Canadian surety business.

Travelers expects to use approximately $700 million of the net cash proceeds from the transaction for additional share repurchases in 2026, while retaining the remainder to support ongoing operations and for general corporate purposes. The transaction and resulting share repurchases are expected to be slightly accretive to the company’s earnings per share in each of the next several years. Jefferies LLC acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP and Stikeman Elliott LLP served as legal advisors to Travelers in this transaction.

This divestiture aligns with Travelers' strategy to focus on core businesses and optimize its capital structure. The sale of the Canadian operations is seen as a strategic move to enhance shareholder value and streamline operations. The transaction is expected to have a positive impact on Travelers' financial performance, with the proceeds from the sale being used to support share repurchases and ongoing operations.