Definity's $3.3B Travelers deal to keep 1,400 jobs in Canada; what it means for workers, brokers, and policyholders
In one of the biggest moves in Canada's insurance sector in recent years,
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.
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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.
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