Travelers to buy insurer from Canada's E-L Financial for $1.1B
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(Reuters) - U.S. insurer Travelers Cos. Inc. said it would buy Dominion of Canada General Insurance Co. from E-L Financial Co. Ltd. for about $1.1 billion to boost its presence in Canada.
The deal will add Dominion's commercial and personal insurance portfolios to Travelers' business in Canada.
The combined operations will be lead by Dominion Chief Executive Brigid Murphy, Travelers said in a statement.
"The Dominion's extensive distribution network and established customer base provide us with an exceptional platform for expanding our commercial lines business," Alan Schnitzer, vice chairman and head of Travelers' Financial, professional and international insurance business segment said.
The deal, which is expected to close in the fourth quarter, will have no significant impact on Travelers' 2013 earnings, but will add slightly to 2014 profit.
Travelers said it would fund the transaction through debt or preferred stock financing, or a combination of both.
The company said it does not expect the transaction to have a big impact on its anticipated share repurchases for 2013 or 2014.
Skadden, Arps, Slate, Meagher & Flom L.L.P. and Gowling Lafleur Henderson L.L.P. served as legal advisers to Travelers.
