To magnify the company's market, Travelers Cos. struck a $1.1 billion deal to buy E-L Financial Corp.'s Dominion of Canada General Insurance Company. Travelers is the only property insurer in the Dow Jones Industrial Average.
The new venture will have headquarters in Toronto and will operate in Canada. The partnership is said to be finalized in the fourth quarter, according to the Travelers Cos.'s statement released today.
This is not the first time that Travelers' entered a venture outside the United States. In 2010, the company took a stake in J. Malucelli Participacoes em Seguros e Resseguros SA, a Brazilian firm. The company has been looking to increase its commercial coverage with the impetus of its Chief Executive Officer Jay Fisherman.
"This transaction is consistent with our strategy to make thoughtful investments in attractive markets outside the United States," Fishman said.
Mark Dwelle, an analyst at RBC Capital Markets, said that "this gives them (Travelers) an immediate scale and platform in Canada."
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