Definity's $3.3B Travelers deal to keep 1,400 jobs in Canada; what it means for workers, brokers, and policyholders
Definity Financial Corp.
is set to acquire the Canadian operations of U.S. giant
Travelers
for $3.3 billion, a deal that could reshape the competitive landscape for both customers and insurers. However, while major acquisitions often come with job cuts, this one doesn't: more than 1,400 Traveler employees across Canada will keep their jobs as the two firms merge under one brand.
With the deal,
Definity
will become Canada's fourth-largest property and casualty insurer, rising from sixth place. It will now manage $6 billion in total annual premiums, a sign of its growing footprint in the insurance sector.
'This is a big step in our journey to build a Canadian champion,' said CEO Rowan Saunders, adding that Definity has been growing faster than the rest of the industry.
For consumers, this could mean more options under Canadian leadership, as Definity plans to expand personal and commercial lines, including specialty insurance like cyber, marine, and professional liability.
Jobs and services to stay
Travelers Canada
employs over 1,400 people across Vancouver, Calgary, Toronto, Ottawa, and Montreal. Definity has confirmed that all employees will be retained, and operations will be combined under one brand.
Live Events
The continuity of jobs and local operations means policyholders should not expect sudden service disruptions. Travelers will, however, keep its Canadian surety business.
What's in it for customers?
With this acquisition, Definity adds about $1.6 billion in new premiums, including $1 billion in personal insurance alone, a 30 per cent jump. More scale can help the company invest in better digital tools, expand coverage types, and offer competitive pricing.
Definity already operates brands like Sonnet (a digital-first insurer), Petline, and Family Insurance. The expanded size may also allow it to negotiate better rates with reinsurers, potentially benefiting consumers in the long run.
Sign of bigger shifts ahead?
This deal also highlights a growing trend: consolidation. Strong Canadian firms are stepping up as foreign players like Travelers pull back. Saunders hinted that more mergers may follow, especially with over 100 insurers still in the market.
'If a big, strong, North American company like Travelers feels scale is important… many others may be thinking the same,' he said.
The transaction still needs regulatory approval and is expected to close by early 2026. Until then, customers of both companies can expect business as usual, but likely with big changes ahead.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
3 hours ago
- Indian Express
Air Canada union says flight attendants will continue strike, defy government
Air Canada flight attendants said on Sunday they will remain on strike and challenge a return-to-work order they called unconstitutional, defying a government decision to force them back to their duties by 2 p.m. ET (1800 GMT). Air Canada had said it planned to resume flights on Sunday evening, a day after the Canadian government issued a directive to end a cabin crew strike that caused the suspension of around 700 daily flights, stranding more than 100,000 passengers. Thousands of Air Canada flight attendants walked off the job on Saturday for the first time since 1985, after months of negotiations over a new contract. The Canadian Union of Public Employees said in a statement that members would remain on strike and invited Air Canada back to the table to 'negotiate a fair deal.' Air Canada and a Canadian government spokesperson were not immediately available for comment. The country's largest carrier had said some flights would still be canceled over the next 7-10 days as the schedule stabilizes and returns to normal. It had started cancelling flights on Friday in anticipation of the stoppage. The Canadian Industrial Relations Board ordered Air Canada to resume operations and all Air Canada and Air Canada Rouge flight attendants to return to their duties. The CIRB was acting on a directive from Jobs Minister Patty Hajdu as the government moved to end the strike and require binding arbitration to break a contract impasse, an action that Air Canada had previously sought from Prime Minister Mark Carney's minority Liberal government but unionized flight attendants fiercely opposed. The most contentious issue in the contract negotiations has been the union's demand for compensation for time spent on the ground between flights and when helping passengers board. Attendants are now largely paid only when their plane is moving. CUPE had pushed for a negotiated solution, saying binding arbitration would take pressure off the airline. Air Canada said on Sunday that the CIRB had ordered the terms of the collective agreement between the union and the airline that expired on March 31 be extended until a new agreement can be reached.
&w=3840&q=100)
First Post
5 hours ago
- First Post
Air Canada resumes operations after government intervenes in strike
Air Canada will restart flights on Sunday after the Canada Industrial Relations Board ordered an end to a strike by 10,000 flight attendants that disrupted operations and halted over 700 flights. Stranded passengers sleep on chairs, as a strike begins after the union, representing more than 10,000 Air Canada's flight attendants, failed to reach an agreement with the airline, at Vancouver International Airport in Richmond, British Columbia, Canada. Reuters Air Canada said that it will restart flights on Sunday after the country's industrial relations board ordered an end to a strike by 10,000 flight attendants, which essentially shut down the carrier and slowed summer tourism. In a statement, the airline stated that, the Canada Industrial Relations Board (CIRB) 'directed Air Canada to resume airline operations and for all Air Canada and Air Canada Rouge flight attendants to resume their duties by 14:00 EDT on August 17, 2025.' STORY CONTINUES BELOW THIS AD While it plans to resume flights on Sunday evening, Canada's flag carrier warned it would take 'several days before its operations return to normal.' Some flights are still scheduled to be cancelled over the next seven to ten days, it added. An Air Canada cabin staff walked off the job early Saturday over a pay disagreement. Hours later, Patty Hajdu, Canada's labor policy minister, invoked a legal clause to suspend the strike and compel both parties to enter binding arbitration. 'The directive, under section 107 of the Canada Labour Code, and the CIRB's order, ends the strike at Air Canada that resulted in the suspension of more than 700 flights,' the Montreal-based carrier said. The Canadian Union of Public Employees (CUPE), which is representing the workers, sought wage increases as well as to address uncompensated ground work, including during the boarding process. It had previously said its members would remain on strike until the government formally issued an order that they return to work. It had urged passengers not to go to the airport if they had a ticket for Air Canada or its lower-cost subsidiary Air Canada Rouge. While it did not immediately issue a response to the back-to-work directive, the CUPE earlier slammed the Canadian government's intervention as 'rewarding Air Canada's refusal to negotiate fairly by giving them exactly what they wanted.' STORY CONTINUES BELOW THIS AD 'This sets a terrible precedent,' it said. The union also pointed out that the chairwoman of CIRB, Maryse Tremblay, previously worked as legal counsel for Air Canada. Tremblay's ruling on whether to end the strike was 'an almost unthinkable display of conflict-of-interest,' the union posted on Facebook. On Thursday, Air Canada detailed the terms offered to cabin crew, indicating a senior flight attendant would on average make CAN$87,000 ($65,000) by 2027. CUPE has described Air Canada's offers as 'below inflation (and) below market value.' In a statement issued before the strike began, the Business Council of Canada warned an Air Canada work stoppage would exacerbate the economic pinch already being felt from US President Donald Trump's tariffs. Canada's flag carrier counts around 130,000 daily passengers and flies directly to 180 cities worldwide.
Time of India
7 hours ago
- Time of India
Air Canada strike: Government ends flight attendants' walkout, services to resume but cancellations linger
Air Canada will restart flights on Sunday evening after the Canadian government intervened to end a strike by its 10,000 flight attendants that left more than 100,000 travellers stranded during the peak summer season. The airline, Canada's largest, said it will take several days before operations return to normal and warned that some flights would remain cancelled over the next seven to 10 days until schedules stabilise. Federal Jobs Minister Patty Hajdu ordered attendants back to work less than 12 hours after they walked off the job at 1 a.m. on Saturday, citing the broader economic impact, AP reported. 'Now is not the time to take risks with the economy,' Hajdu said, pointing to the unprecedented tariffs the US has imposed on Canada. The dispute has been referred to the Canada Industrial Relations Board, which extended the current collective agreement until a new one is decided by arbitration. The walkout had paralysed operations of the carrier, which runs nearly 700 flights daily. The shutdown was affecting about 130,000 passengers a day. Aviation analytics firm Cirium said Air Canada had cancelled 671 flights by Saturday afternoon, following 199 cancellations on Friday. Another 96 flights scheduled for Sunday were already suspended. The union had rejected Air Canada's earlier request for government-directed arbitration, escalating the conflict. The government previously forced two major railroads into arbitration during a strike last year, a move unions challenged in court, arguing it weakened labour's bargaining power. In this case, the Canadian Chamber of Commerce welcomed Ottawa's intervention, and the Business Council of Canada had also urged binding arbitration. Hajdu stressed that Prime Minister Justin Trudeau's Liberal government is 'not anti-union,' but added it was clear both sides were at an impasse. Air Canada announced that passengers affected by cancellations would be eligible for full refunds through its website or mobile app. It also promised to arrange alternative travel with other Canadian and foreign airlines 'where possible,' but cautioned that immediate rebooking could not be guaranteed as flights on other carriers were already full during the busy summer season. The airline and the Canadian Union of Public Employees (CUPE) have been negotiating for nearly eight months without success. Pay remains the most contentious issue. Air Canada said its latest proposal offered a 38% increase in overall compensation, including benefits and pensions, over four years, a package that 'would have made our flight attendants the best compensated in Canada.' The union disagreed, arguing that the proposed 8% raise in the first year fell short of addressing inflation and raised concerns about the unpaid work flight attendants perform when aircraft are not in the air. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
