Property and casualty insurer The Travelers Cos. will spend about $1.1 billion in cash to buy The Dominion of Canada General Insurance Co. and strengthen its reach north of the U.S. border.
The New York-based insurer said Monday The Dominion's distribution network and customer base will help Travelers bolster its commercial lines business and presence in Canada.
Travelers will use debt and possibly preferred stock to help pay for the deal. It expects that the acquisition will have no significant impact on this year's earnings per share and will provide a slight boost to 2014.
It expects the deal to close in the fourth quarter, subject to regulatory approvals and other closing conditions.
Travelers brought in $25.7 billion in revenue last year and is among the biggest providers of property and casualty insurance for businesses and individuals in the United States. In 2009, it became one of the 30 stocks that make up the Dow Jones industrial average.
Company shares slipped 36 cents to $83.08 Monday morning. The shares had climbed 16 percent this year through Friday's close.
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