Travelers Cos. said on Tuesday it has agreed to sell its Canadian personal insurance business and majority of its commercial insurance operations in the country to Definity Financial in a deal valued at $2.4 billion.

The transaction adds to a wave of consolidation in the North American insurance sector as firms streamline operations and sharpen geographic focus amid rising capital costs and evolving regulatory demands.

By selling its Canadian personal and commercial insurance units, Travelers joins other global insurers in reshaping portfolios to prioritize profitability and scale in core markets.

Definity said the deal will establish it as the fourth-largest property and casualty insurer in Canada, with the transaction immediately accretive to its operating earnings per share.

The company also expects the acquisition, expected to close in the first quarter of 2026, to add roughly $1 billion in annual premiums to its personal lines business.

RBC Capital Markets is acting as Definity’s financial adviser, while Jefferies LLC advised Travelers on the deal.

(Reporting by Manya Saini in Bengaluru; editing by Shounak Dasgupta)