DEFINITY FINANCIAL CORPORATION EXPECTS TO CLOSE PREVIOUSLY ANNOUNCED TRAVELERS TRANSACTION ON JANUARY 2, 2026

Executive Summary

• Definity Financial Corporation received all required regulatory approvals and expects to close its acquisition of The Travelers Companies’ Canadian personal insurance business and the majority of its commercial insurance business on January 2, 2026.
• The transaction is positioned as “transformational,” intended to move Definity into the top five P&C insurers in Canada and improve its product mix and talent base.
• Management projects a mid‑teens operating return on equity (ROE) post‑integration, indicating a financially compelling deal.

Key Details

• Regulatory Approvals: All required approvals obtained, including from the Minister of Finance (Canada).
• Transaction Scope: Acquisition includes Travelers’ Canadian personal insurance business and most of its commercial insurance business (excluding surety).
• Closing Date Expected: January 2, 2026.
• Strategic Rationale:
• Expand market share to become one of the five largest property & casualty insurers in Canada.
• Strengthen business mix and broaden product breadth.
• Access exceptional talent from Travelers’ operations.
• Financial Outlook: Anticipated mid‑teens operating ROE after integration, described as “attractive economics.”
• CEO Quote: Rowan Saunders, President & CEO, highlighted the deal’s transformational nature and its role in building a Canadian champion.

Notable Quotes

“Definity is pleased to be proceeding with momentum through this transformational acquisition as we continue building a Canadian champion,” – Rowan Saunders, President & CEO.
“The acquisition will enable us to achieve our objective to become one of the five largest P&C insurers in the country… It is financially compelling, with attractive economics, enabling Definity to sustainably target a mid‑teens Operating ROE post integration.” – Rowan Saunders