Travelers to acquire leading cyber MGA Corvus
Transaction accelerates deployment of cutting-edge cyber capabilities
The Travelers Companies, Inc. has announced that it has agreed to acquire Corvus Insurance Holdings, Inc. for approximately $435 million USD. 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.
Authored by Travelers
About Travelers
We wrote the first auto insurance, the first aircraft liability insurance, and even the first personal accident cover for astronauts.
In today’s fast-changing world, this heritage of adventure really counts. With an extended network of underwriting, claims management, and industry experts in 125 countries, we’re here to insure your clients’ ambitions – no matter their size and scope. Our expertise and experience deliver policies that help them continue their journey.
With businesses facing ever more emerging and evolving issues, our suite of insurance products offers bespoke cover for each risk, and our commitment to genuine, caring partnerships means we’ll always be there to advise and support our clients and our broker partners, – whatever the future holds.
The Travelers Companies, Inc. (“TRV”) is a leading provider of property liability insurance for motor, home and business. The Group has more than 30,000 employees and operations in the United States, Canada, UK and Ireland.
The group has total assets of approximately $110 billion, shareholders’ equity of $26 billion and total revenue of $32 billion, as of December 31, 2019. Our European based operations offer our customers a wide range of coverage through Travelers Insurance Company Limited, Travelers Syndicate Management Limited (Syndicate 5000 at Lloyd’s), Travelers Underwriting Agency Limited and Travelers Insurance Designated Activity Company.