Definity Financial Eyes C$1bn Debt Sale for Travelers Canada Acquisition
Definity Financial is in talks with potential investors to issue debt, as it prepares for a significant acquisition. The company aims to raise C$1bn ($723m) ahead of its planned purchase of Travelers Canada's personal and commercial insurance operations, valued at $2.4bn.
The acquisition, expected to complete in Q1 2026, subject to regulatory approval, will not include Travelers Canada's surety operations. It is projected to place Definity among the leading five below property and casualty (P&C) insurers in Canada, with a combined annual premium approaching C$6bn.
Definity is planning a debt sale structured in two tranches of five and ten years. The five-year portion could be priced at a margin of 0.95-1.05 percentage points above the benchmark government rates. The ten-year part is estimated to be in the 1.15-1.25 percentage point band. RBC Capital Markets and TD Securities are orchestrating this stock market debt sale. Meanwhile, BMO Capital Markets, National Bank Financial, and RBC Capital Markets are involved in the realization of a separate C$1bn capital one login for Definity Financial.
Definity Financial's acquisition of Travelers Canada's key operations is set to significantly boost its P&C insurance portfolio. The company is securing funds through a debt sale to facilitate this growth, with the deal expected to close in early 2026.
Read also:
- HLC Approves ₹4,645.60 Crore for Flood Recovery and Wetland Rejuvenation in Nine States
- Crooked House Pub's Demolition: Council Orders Rebuild, Debate on Historic Building Protections
- Shaping India's Economic Progression: Readying the Financial System for Tomorrow
- Ethiopia's Grand Dam: 15,000 Lives Lost, Water Concerns Unresolved
