Summary
On June 10, 2013, The Travelers Companies, Inc. announced a significant strategic acquisition, entering into a definitive agreement to purchase The Dominion of Canada General Insurance Company from E-L Financial Corporation Limited for C$1.125 billion (approximately US$1.1 billion) in cash. This acquisition, expected to close in the fourth quarter of 2013, subject to regulatory approvals and customary conditions, marks an expansion of Travelers' operations. The company plans to fund this transaction through a combination of debt, preferred stock, and internal resources. Importantly, Travelers anticipates that this financing strategy will not materially impact its previously stated share repurchase programs for both 2013 and 2014, providing a degree of assurance to shareholders regarding ongoing capital return initiatives.
Key Highlights
- 1Travelers Companies, Inc. (TRV) to acquire The Dominion of Canada General Insurance Company.
- 2Aggregate cash purchase price of C$1.125 billion (approximately US$1.1 billion).
- 3The acquisition is expected to close in the fourth quarter of 2013.
- 4Transaction is subject to regulatory approvals and other customary closing conditions.
- 5Financing will utilize a mix of debt, preferred stock, and internal resources.
- 6The company does not anticipate a significant impact on 2013 or 2014 share repurchase plans.
- 7The acquisition is expected to expand Travelers' operational footprint.