The Travelers Companies Inc. (NYSE: TRV) is buying the Dominion of Canada General Insurance Company for about $1.1 billion.
Dominion of Canada, headquartered in Toronto, will be integrated into Travelers insurance business. The target is being sold by E-L Financial Corp. Ltd. (TSX: ELF).
The deal should allow Travelers to strengthen its position in Canada. Hartford, Conn.-based Travelers provides property casualty insurance for automobiles, homes and businesses. Dominion of Canada also provides automobile, home and business insurance.
Skadden Arps Slate Meagher & Flom LLP and Gowling Lafleur Henderson LLP served as Travelers’ legal counsel.
The insurance industry’s consolidation has been evidenced by M&A in the industry. Recently, Marsh picked up Franco & Acra Tecniseguros, an insurance company based in the Dominican Republic. In June, Scor Global Life Americas Holding Inc. announced it is buying Generali U.S. Holdings Inc. for about $750 million. Also in June, Tower Group International Ltd. (Nasdaq: TWGP) said it will grab American Safety Reinsurance Ltd. for $59 million.
For more on insurance M&A, see “Insurance Industry Experiences M&A Uptick.”