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Travelers Companies to buy Dominion of Canada General Insurance

Staff writer ▼ | June 11, 2013
The Travelers Companies has agreed to acquire The Dominion of Canada General Insurance Company from E-L Financial Corporation for approximately $1.1 billion in cash.
Travelers Companies Dominion of Canada General Insurance Company
Travelers Companies Dominion of Canada General Insurance CompanyThe Travelers Companies has agreed to acquire The Dominion of Canada General Insurance Company from E-L Financial Corporation for approximately $1.1 billion in cash.


The price is a subject to adjustment and the Dominion and Travelers' Canadian operations will be integrated and the combined organization will remain headquartered in Toronto.

The transaction is expected to close in the fourth quarter of 2013, subject to regulatory approvals and other customary closing conditions. Travelers will fund the transaction, subject to market conditions, through a combination of debt and/or preferred stock financing and internal resources.

Based on this financing plan, the company does not believe that the transaction will have a significant impact on anticipated share repurchases for 2013 or 2014.

"This transaction is consistent with our strategy to make thoughtful investments in attractive markets outside 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.

Brigid Murphy, President and Chief Executive Officer of The Dominion, will continue in these roles at the combined organization. George Petropoulos, President and Chief Executive Officer of Travelers Canada, will help Murphy lead the new organization as Vice Chairman. Mr. Petropoulos will also be Executive Vice President, Bond and Financial Products.


 

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