Travelers agrees to buy cyber MGU Corvus
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Travelers Cos. Inc. said Friday it has agreed to acquire cyber managing general underwriter Corvus Insurance Holdings Inc. for approximately $435 million.
The transaction is expected to close in the first quarter of 2024, subject to regulatory approvals.
Boston-based Corvus has a $200 million-plus book of business, more than 300 employees, and offices in the U.S., United Kingdom and Germany. It provides specialty cyber coverage in the U.S., Canada, Europe, Middle East and Australia, with expertise in the middle-market excess and surplus cyber insurance market.
Travelers became a capacity provider for Corvus’ products in the U.S., effective Oct. 1, after a similar arrangement in Europe was announced last year.
The deal accelerates Travelers’ access to “cutting-edge cyber capabilities that were on our strategic roadmap, including sophisticated underwriting algorithms, advanced cyber vulnerability scanning and digital connectivity to customers and distribution partners,” Alan Schnitzer, Travelers chairman and CEO, said in a statement.
Travelers said it will fund the acquisition from internal resources and that while the acquisition is strategically important, the expected impact to earnings in the near term is “immaterial.”
Corvus was founded by former brokerage executive Phil Edmundson in 2017.
