Property/casualty insurer The Travelers Cos. says it will spend about $1.1 billion in cash to buy The Dominion of Canada General Insurance Co. and strengthen its reach north of the U.S. border.
The New York-based insurer says The Dominion’s distribution network and customer base will help Travelers bolster its commercial lines business and presence in Canada.
Travelers will pay for the deal with a combination of debt, possibly preferred stock and company resources. It expects that the acquisition will have no significant impact on this year’s earnings per share and will provide a slight boost to 2014.
It expects the deal to close in the fourth quarter, subject to regulatory approvals and other closing conditions.
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