Property and casualty insurance giant Travelers (NYSE: TRV), announced today that it has entered into an agreement to acquire Corvus Insurance Holdings for approximately $435 million.
Founded in 2017 and headquartered in Boston, MA, Corvus is a cyber insurance managing general underwriter that relies on artificial intelligence for data analysis and for loss prediction and prevention. The company is known for its expertise in the middle-market excess and surplus cyber insurance space, catering to both wholesale brokers and large retail producers.
The acquisition is a strategic move aimed at enhancing Travelers’ capabilities in the rapidly evolving cyberinsurance market.
Alan Schnitzer, Chairman and Chief Executive Officer of Travelers, highlighted the importance of this acquisition in advancing the company’s 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,” he said.
“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,” added Jeff Klenk, Executive Vice President and President of Bond & Specialty Insurance at Travelers.
The transaction will be funded from Travelers’ “internal resources” and is expected to close in the first quarter of 2024, subject to regulatory approvals and customary closing conditions. Travelers does not anticipate any material near-term impact on earnings.
Corvus has raised nearly $150 million in funding, including a $100 million Series C round announced in March 2021.
Travelers generated revenues of approximately $37 billion in 2022 and boasts a workforce of around 30,000 employees.