Travelers, a leading insurance provider has entered into a definitive agreement to acquire cyber InsurTech firm Corvus for $435m.
Travelers, founded in 1853, is a stalwart in the insurance industry, providing commercial, personal property, and casualty insurance products and services. Corvus, established in 2017, stands at the forefront of cyber insurance, leveraging proprietary technology to deliver comprehensive insurance solutions.
The acquisition, valued at approximately $435m, is a strategic play by Travelers to enhance its capabilities in the cyber insurance domain. The deal is driven by Travelers’ ambition to integrate Corvus’ advanced underwriting algorithms, cyber vulnerability scanning tools, and digital connectivity with customers and distribution partners. This aligns with Travelers’ innovation agenda to stay ahead in the rapidly evolving cyber risk landscape.
Travelers, with its vast network and resources, is a mainstay in the insurance world, offering a broad range of risk management solutions. Conversely, Corvus operates as an InsurTech pioneer, specialising in cyber insurance underwriting and powered by artificial intelligence. It provides a suite of cyber sales, service, and support capabilities and is recognised for its significant inroads in the excess and surplus cyber insurance market. Corvus’ platform also stands out for its ability to identify and reduce policyholders’ cyber exposure continually.
The deal promises a robust integration of Corvus’ expertise with Travelers’ established market presence, which includes renewing Corvus’ substantial book of business exceeding $200m. Travelers intends to utilise Corvus’ capabilities to amplify the return profile of its cyber portfolio and reinforce its market leadership.
Travelers and Corvus already share a solid operational relationship, with existing cyber capacity arrangements in both the United States and Europe. This acquisition is expected to cement that relationship further, bringing Corvus’ knowledge and technology into the Travelers fold, while funding for the transaction will be through Travelers’ internal resources. The closing of the acquisition is anticipated for the first quarter of 2024, pending regulatory approvals and standard closing conditions.
Travelers Chairman and CEO Alan Schnitzer emphasised the importance of the acquisition, “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.”
Echoing the sentiment of a shared vision and complementary strengths, Corvus CEO Madhu Tadikonda expressed enthusiasm about joining forces with Travelers, “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.”
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