Travelers Companies to acquire cyber insurance leader Corvus for $435m
In a strategic move to enhance its cybersecurity insurance offerings, The Travelers Companies, Inc. (NYSE: TRV) has entered an agreement to acquire Corvus Insurance Holdings, Inc., a leading cyber insurance underwriter, for approximately $435 million. This acquisition marks a significant investment in technology-augmented insurance solutions for Travelers, a company already renowned for its innovative industry approaches.
Travelers Expands Cyber Underwriting Expertise
Alan Schnitzer, Chairman and CEO of Travelers, expressed the company’s dedication to innovation through strategic investments. “This transaction accelerates our access to cutting-edge cyber capabilities that were on our strategic roadmap,” Schnitzer commented, emphasizing the addition of Corvus’s advanced underwriting algorithms and cyber vulnerability scanning.
Corvus’s proprietary AI-driven platform is celebrated for its integrated cyber sales and services, which have been pivotal in identifying and reducing policyholders’ cyber event risks. The company is noted for its considerable growth in the middle-market excess and surplus lines, showcasing strong performance metrics and loss ratios.
Strategic Synergies Heralded by Executives
Jeff Klenk, Executive Vice President and President of Bond & Specialty Insurance at Travelers, heralded the acquisition, noting the opportunity to renew Corvus’s $200+ million book of business. “We will leverage Corvus’ leading capabilities to enhance the return profile of our already attractive cyber portfolio,” Klenk added, signaling the combined prowess of the two entities in the cyber insurance market.
Corvus CEO Madhu Tadikonda also expressed optimism about the acquisition, highlighting the shared innovation-driven culture between Corvus and Travelers and the synergistic potential of the merger.
Details and Advisors on the Transaction
Travelers will utilize internal resources to fund the transaction, which is slated for completion in the first quarter of 2024 pending regulatory approvals. Although strategically significant, Travelers anticipates the impact on near-term earnings to be immaterial.
In the advisory roles, Jefferies LLC and Skadden, Arps, Slate, Meagher & Flom LLP represented Travelers, while Nomura Securities International, Inc. and Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP were advisors to Corvus.