Travelers to buy cyber MGU Corvus Insurance in $435M deal
Travelers is using internal resources to cover the transaction, which is expected to close in Q1 2024.
The Travelers Companies., Inc. is buying cyber insurance managing general underwriter Corvus Insurance Holdings, Inc. in a deal valued at approximately $435 million, according to the purchasing firm.
“Corvus’ expertise in excess and surplus lines for cyber, along with our industry-leading distribution position in the admitted markets, is a powerful combination,” Jeff Klenk, Travelers executive vice president and president of bond & specialty insurance, said in a release. “In addition to having the opportunity to renew Corvus’ $200 million plus book of business, we will leverage Corvus’ leading capabilities to enhance the return profile of our already attractive cyber portfolio.”
Corvus brings a robust background in cyber products and a strong presence in the middle-market E&S cyber insurance sector. The cyber-focused firm offers its policyholders access to an AI-driven cyber risk platform that can help identify and mitigate exposure to cyberattacks, according to Travelers. The platform also offers distribution efficiencies to agents.
Corvus CEO Madhu Tadikonda said in a release: “We are excited for the opportunity to contribute our capabilities and knowledge to Travelers. Our complementary cultures and strong commitment to innovation make this transaction an excellent fit.”
Corvus declined to comment further for this story.
Alan Schnitzer, chairman and CEO of Travelers, said in a release: “This transaction accelerates our access to cutting-edge cyber capabilities that were on our strategic roadmap, including sophisticated underwriting algorithms, advanced cyber vulnerability scanning and digital connectivity to customers and distribution partners.”
Travelers is using internal resources to cover the transaction, which is expected to close early this coming year.
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