Travelers Companies, Inc. (NYSE: TRV) plans to acquire Corvus Insurance Holdings, Inc. for roughly $435 million. Corvus, a cyber insurance managing general underwriter known for its proprietary technology, will provide Travelers with advanced cyber capabilities. They include underwriting algorithms, vulnerability scanning, and enhanced digital connectivity.
Alan Schnitzer, Chairman and Chief Executive Officer of Travelers, emphasized the company’s commitment to innovation, stating that this acquisition aligns with its strategic roadmap. Corvus, with its AI-driven cyber risk platform, offers a comprehensive suite of integrated cyber sales and service capabilities. It excels in identifying vulnerabilities throughout the policy period to reduce exposure to cyber events. A benefit to both customers and distribution partners.
Corvus’ strong presence in the middle-market excess and surplus cyber insurance marketplace, serving wholesale brokers and large retail producers, complements Travelers’ industry-leading position in the admitted markets. Jeff Klenk, Executive Vice President and President of Bond & Specialty Insurance at Travelers, expressed enthusiasm about the merger. He highlighted the opportunity to renew Corvus’ $200+ million book of business and enhance the return profile of their existing cyber portfolio.
Travelers will use internal resources to fund this acquisition. They expect to conclude the transaction in the first quarter of 2024, subject to regulatory approvals and customary closing conditions. The acquisition is not expected to have a significant short-term impact on earnings.
“Safer World”
Madhu Tadikonda, Chief Executive Officer of Corvus, noted that both companies share a strong commitment to innovation, making this transaction a perfect fit. “At Corvus we have been building a safer world through cyber insurance products and digital tools,” Tadikonda said.
Travelers, a leading provider of property casualty insurance, employs approximately 30,000 people. It reported revenues of around $37 billion in 2022. The company remains focused on its innovation agenda and is positioned to leverage Corvus’ capabilities in the cyber insurance landscape.
Source: Travelers to Acquire Corvus Insurance