The Travelers Cos. says it will acquire The Dominion of Canada General Insurance Company from E-L Financial Corp. for approximately $1.1 billion in cash.
Travelers says The Dominion and Travelers' Canadian operations will combine and the organization will remain headquartered in Toronto.
The deal is expected to close in the fourth quarter of 2013, subject to regulatory approvals and conditions.
“This transaction is consistent with our strategy to make thoughtful investments in attractive markets outside the United States,” says Jay Fishman, chairman and CEO of Travelers, in a ststement. “The Dominion is a great franchise, and this is a very good opportunity for Travelers to significantly improve its market position and scale in a meaningful market.
Alan Schnitzer, vice chairman and head of Travelers' Financial, Professional & International Insurance business segment, adds, ”The Dominion's extensive distribution network and established customer base provide us with an exceptional platform for expanding our commercial lines business and generally strengthening our presence in Canada.
Brigid Murphy, president and CEO of The Dominion, will continue in these roles at the combined organization. George Petropoulos, president and CEO of Travelers Canada, will help Murphy lead the new organization as vice chairman. In addition, Petropoulos will be executive vice president of Bond and Financial Products.
“The combination will substantially enhance Travelers' product breadth in Canada by coupling The Dominion's commercial and personal portfolios with Travelers Canada's surety, management liability and commercial middle market products,” says Petropoulos.
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