Definity says Travelers Canada deal won’t stall brokerage M&A strategy
Definity Financial Corporation says the acquisition of Travelers Canada won’t slow down its brokerage M&A plans.
“The Travelers [Canada] acquisition would not have an impact on building out our broker platform. This really is part of the business that is standalone and not impacted by the Travelers acquisition,” Rowan Saunders, president and CEO of Definity, said during the company’s second quarter 2025 conference call.
Definity announced on May 27th its plan to acquire Travelers’ Canadian operations — excluding surety and certain select business lines retained by Travelers — for $3.3 billion.
The deal will make Definity a Top 5 insurer and is estimated to add about $1 billion in annual premiums to Definity’s personal lines business.
“We have the funds to keep investing in our broker platform, and we have the management capability to keep that platform building and integrating as they go, so Travelers won’t impact that,” he said during the Aug. 1 earnings call.
“I think that the broker platform continues to grow very well organically, and…there are significant opportunities in the pipeline, so that should continue.”
Definity says it will continue scaling in its two priority provinces — Ontario and Alberta. The insurer recently made its first brokerage acquisition in Nova Scotia, totalling six transactions thus far in 2025.
Definity getting feedback from brokers
News of Definity’s Travelers Canada acquisition has been well received by brokers, who are used to consolidation in the P&C industry, says Saunders.
He responded to an investor who asked whether any agents or brokers who did business with Travelers expressed concerns about channel conflicts, given that Travelers’ U.S. business is committed to the independent broker distribution system.
“In the discussions that we’ve had — whether they’re in town halls or the one-on-ones with the largest brokers — they’re, quite frankly, delighted about this acquisition and they are really pleased that Definity is the acquirer,” he said.
Vertical integration into the broker channel is “unique to the Canadian business,” and many brokers are “pretty comfortable” with insurer-led acquisitions, said Saunders. “We’ve got a high degree of confidence that the channel conflict is not an issue. They’re pretty used to [acquisitions] in the marketplace.
“I’d remind you that the vast majority of Travelers brokers also represent Definity, so there is a natural overlap,” he said. “The feedback we’ve got from from brokers that represent both organizations has actually been extremely positive.”
When asked for their thoughts on the deal, brokers shared positive sentiment with Canadian Underwriter, with qualification that it doesn’t impact regional market concentration or customer choice.
The deal is expected to close in the first quarter of 2026, following regulatory approval.
“I’m very pleased to say that we have already received unconditional clearance from the Competition Bureau,” Saunders said. “On the insurance side, we continue to be actively engaged with OSFI [Office of the Superintendent of Financial Institutions], providing them with the information they need to fully assess the transaction.
“Integration planning is well underway, as we’ve already put in place robust transition planning and governance structure. Since the announcement of the transaction, members of the senior leadership team and I have held nearly two dozen town halls with our employees and brokers, and the sentiment has been overwhelmingly positive,” said Saunders.
“In conclusion, the acquisition of Travelers Canada will enhance and strengthen our mix of business, increase the breadth of our product offering and provide access to hard to source, high performing talent.”
