Travelers (NYSE: TRV ) has traveled north of the border for its latest large-scale asset purchase. The company announced Monday that it has agreed to a deal with Canada's E-L Financial to acquire The Dominion of Canada General Insurance.
The price is roughly $1.1 billion in cash, although the final amount is subject to adjustment.
In the press release announcing the news, Travelers quoted CEO Jay Fishman as saying that Dominion is "a great franchise, and this is a very good opportunity for Travelers to significantly improve its market position and scale in a meaningful market."
The American firm said Dominion's Canadian operations would be integrated with its own in that country, and the blended firms would have their headquarters in Toronto. Dominion's current CEO, Brigid Murphy, will serve in the same capacity for the combined entity. The Dominion was founded in 1887 in Toronto and has expanded across Canada. The transaction is expected to close in the fourth quarter.