The Canadian insurance landscape is shifting once again. Definity Financial Corporation, the parent company of well-known brands such as Economical Insurance, Sonnet, and Family Insurance Solutions, has announced that it will acquire Travelers Insurance Company of Canada and related operations from The Travelers Companies, Inc.
This landmark agreement, valued at approximately US $2.4 billion (C $3.3 billion), is expected to close in the first quarter of 2026, subject to regulatory approvals. Once finalized, Definity will become one of Canada’s top four property & casualty insurers, strengthening its national presence and expanding capacity across both personal and commercial lines.
What We Know So Far
Definity has advised broker partners, including L.D. Dermody Insurance Brokers, that they will begin converting existing Travelers Canada policies to Definity systems as part of this transition. The goal is to align operations, underwriting, and pricing models across Definity’s portfolio to create a more unified client experience.
In practical terms, this means that:
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Existing Travelers policies will be migrated into Definity’s policy systems over time.
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Pricing alignments are expected as Definity integrates Travelers’ book of business.
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New-business quoting processes will change, with updates expected early in the new year.
Definity has confirmed that further communication will be provided to brokers outlining timelines, system changes, and quoting procedures for 2026.
Why This Matters
Industry consolidation is not new, but this acquisition is particularly significant for brokers and clients across Ontario. It brings together two established Canadian insurers with complementary strengths:
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Travelers Canada has a long history of reliable personal and commercial products.
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Definity has invested heavily in digital innovation, analytics, and broker-focused technology.
By combining these capabilities, Definity aims to deliver more consistent pricing, improved technology, and expanded capacity, potentially benefiting both brokers and policyholders.
However, as with any large-scale transition, there will be a period of adjustment. Changes to rating models, underwriting appetite, and policy processing may occur as systems merge and Definity refines its product offerings.
What It Means for L.D. Dermody Clients
As a long-standing independent Ontario brokerage, our role remains the same: to act in our clients’ best interest. We are actively monitoring updates from Definity and Travelers Canada to ensure a smooth transition for all affected policies.
Here’s what our clients can expect:
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No immediate action is required. Current Travelers policies remain valid and fully supported.
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We will communicate any required updates. Once Definity releases details on quoting, renewals, and policy conversions, we will contact affected clients directly.
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We’ll continue to shop the market. As an independent brokerage, we represent multiple insurers. Our priority is ensuring your coverage remains competitive, appropriate, and aligned with your needs.
The Bigger Picture: Strength in Scale
This acquisition reflects a broader trend in the Canadian P&C industry: insurers are consolidating to gain scale, efficiency, and pricing flexibility in a challenging market marked by inflation, climate risk, and supply-chain pressures.
Definity’s acquisition of Travelers Canada positions the combined entity to compete more effectively and potentially bring enhanced stability to the market over the long term.
Our Commitment to You
At L.D. Dermody Insurance Brokers, we remain committed to providing transparent, informed guidance throughout this transition. We will continue to liaise with Definity as more details emerge and ensure that every client understands how these changes may affect their coverage or pricing.
If you have questions about your current Travelers policy, or simply want to review your insurance options ahead of renewal, our team is here to help.
📞 Call us: 905-479-1100
📧 Email: contact@lddermody.com
