The Travelers Companies, Inc. (NYSE: TRV) 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.”
Alan Schnitzer, Chairman and Chief Executive Officer of Travelers, said:
“We continue to make thoughtful investments in strategic capabilities that advance our innovation agenda. 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.”
Jeff Klenk, Executive Vice President and President of Bond & Specialty Insurance at Travelers, said:
“Corvus’ expertise in excess and surplus lines for cyber, along with our industry-leading distribution position in the admitted markets, is a powerful combination. 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.”