Travelers to Buy Canadian Insurer for About $1.1B

June 11, 2013

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.

Was this article valuable?

Here are more articles you may enjoy.