Travelers Companies to buy Dominion of Canada General Insurance
Posted June 10, 2013 10:50 am.
This article is more than 5 years old.
TORONTO – Travelers Companies Inc. is making a $1.125-billion investment to expand its presence in Canada, through the acquisition of Dominion of Canada General Insurance Co.
Dominion will be integrated with Travelers’ Canadian operation, and the combined business will remain headquartered in Toronto. Travelers says the deal is expected to close in the fourth quarter and add to its earnings next year.
Dominion’s president and CEO, Brigid Murphy, will take on the same role at the combined organization, while George Petropoulos, president and CEO of Travelers Canada will become vice chairman.
“This is the perfect match for the Dominion,” Murphy said in a statement Monday.
“Travelers is a recognized leader in the insurance industry with a well-deserved reputation for excellence. We are looking forward to working with the Travelers Canada team as we begin this exciting new chapter, while continuing our commitment to the communities and organizations we serve.”
Travelers said in its statement that the deal is consistent with a strategy of investing outside of the United States.
“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,” said Jay Fishman, chairman and chief executive officer of Travelers
Dominion Insurance traces its history to 1887, when its first president was Sir John A. Macdonald — Canada’s first prime minister. Despite its long history, Dominion is a relatively low-profile provider of property and casualty insurance.
E-L Financial, Dominon’s parent company, said it hasn’t decided what to do with money from the sale, which is expected to close in the fourth quarter, subject to regulatory approvals.
E-L said it will continue to own 80 per cent of Empire Life Insurance, which underwrites life and health insurance policies and provides investment products.
“We are extremely proud of what The Dominion team has achieved over the years. We could not be happier that Travelers, a highly respected and well capitalized firm, will be the platform for future growth and success” said Duncan Jackman, E-L Financial’s president and chief executive officer.
