Transaction accelerates deployment of cutting-edge cyber capabilities
The Travelers Companies, Inc. (NYSE: TRV) today announced that it has agreed to acquire Corvus Insurance Holdings, Inc. for approximately $435 million. Founded in 2017, Corvus is an industry-leading cyber insurance managing general underwriter, powered by proprietary technology.
"We continue to make thoughtful investments in strategic capabilities that advance our innovation agenda," said Alan Schnitzer, Chairman and Chief Executive Officer of Travelers. "This transaction accelerates our access to cutting-edge cyber capabilities that were on our strategic roadmap, including sophisticated underwriting algorithms, advanced cyber vulnerability scanning and digital connectivity to customers and distribution partners."
Powered by a proprietary, AI-driven cyber risk platform, Corvus has developed an industry-leading suite of integrated cyber sales, service and support capabilities. The Corvus team has extensive expertise in the cyber product line and a strong presence in the middle-market excess and surplus cyber insurance marketplace, serving both wholesale brokers and large retail producers. Through its platform, Corvus effectively identifies vulnerabilities throughout the policy period to reduce customers' exposure to cyber events. Corvus' platform also delivers distribution efficiencies to insurance agents and brokers. Driven by its proven technology and dynamic team, Corvus has grown its business at attractive loss ratios.
"Corvus' expertise in excess and surplus lines for cyber, along with our industry-leading distribution position in the admitted markets, is a powerful combination," said Jeff Klenk, Executive Vice President and President of Bond Specialty Insurance at Travelers. "In addition to having the opportunity to renew Corvus' $200+ million book of business, we will leverage Corvus' leading capabilities to enhance the return profile of our already attractive cyber portfolio. We have a strong working relationship with the Corvus team through our existing cyber capacity arrangements in the United States and Europe, and we are thrilled to have them join the Travelers family."
Madhu Tadikonda, Chief Executive Officer of Corvus, said, "At Corvus we have been building a safer world through cyber insurance products and digital tools that reduce risk and improve resilience for policyholders. We are excited for the opportunity to contribute our capabilities and knowledge to Travelers. Our complementary cultures and strong commitment to innovation make this transaction an excellent fit."
Travelers will fund the transaction from internal resources. The transaction is expected to close in the first quarter of 2024, subject to regulatory approvals and other customary closing conditions. While the acquisition is strategically important, the expected impact to earnings in the near term is immaterial.
Jefferies LLC acted as financial advisor and Skadden, Arps, Slate, Meagher Flom LLP provided legal counsel to Travelers in this transaction. Nomura Securities International, Inc. acted as financial advisor and Gunderson Dettmer Stough Villeneuve Franklin Hachigian, LLP provided legal counsel to Corvus in this transaction.
About Travelers
The Travelers Companies, Inc. (NYSE: TRV) is a leading provider of property casualty insurance for auto, home and business. A component of the Dow Jones Industrial Average, Travelers has approximately 30,000 employees and generated revenues of approximately $37 billion in 2022. For more information, visit Travelers.com.
Forward-Looking Statements
All statements in this press release, other than statements of historical facts, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, without limitation, express or implied statements concerning the proposed transaction and its expected impact on Travelers. Actual results of matters addressed in these forward-looking statements involve risks and uncertainties and may differ substantially from those expressed or implied. Some of the factors that could cause actual results to differ are discussed under the heading "Forward Looking Statements" in Travelers' most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission. Additional factors that could cause actual results to differ include, but are not limited to, risks relating to pursuing new markets and opportunities and the risk that Travelers may not realize the anticipated benefits from the transaction. In addition, the transaction is subject to closing conditions and may not occur. The forward-looking statements in this press release speak only as of the date of this press release, and Travelers undertakes no obligation to update any forward-looking statements.
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