Press release from Business Wire
A.M. Best Comments on Travelers Companies, Inc.'s Acquisition of The Dominion of Canada General Insurance Company
Tuesday, June 11, 2013
A.M. Best Comments on Travelers Companies, Inc.'s Acquisition of The Dominion of Canada General Insurance Company14:48 EDT Tuesday, June 11, 2013
OLDWICK, N.J. (Business Wire) -- A.M. Best Co. has commented that the ratings of The Travelers Companies, Inc. (Travelers) (New York, NY) [NYSE: TRV] and its subsidiaries remain unchanged following its announcement that it has agreed to acquire The Dominion of Canada General Insurance Company (The Dominion) (Toronto, Canada), one of the largest property/casualty insurers in Canada, from E-L Financial Corporation Limited [TSX: ELF]. The Dominion and Travelers' Canadian operations will be integrated, and the combined organization will remain headquartered in Toronto.
The acquisition of The Dominion will enhance Travelers' scale and product breadth in Canada by coupling The Dominion's small commercial and personal portfolios with Travelers Canada's surety, management liability and commercial middle market products. Travelers will fund the transaction through a combination of debt and/or preferred stock financing and internal resources. Given Travelers' strong consolidated risk-adjusted capitalization, historically favorable operating results, comprehensive risk management, modest financial leverage and relatively strong interest coverage, the proposed acquisition is not expected to adversely impact the financial position of Travelers or its subsidiaries. The transaction is expected to close in the fourth quarter of 2013, subject to regulatory approvals and other customary closing conditions.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
A.M. Best Co.
Senior Financial Analyst
(908) 439-2200, ext. 5372
Michael Lagomarsino, CFA
Assistant Vice President
(908) 439-2200, ext. 5810
Senior Manager, Public Relations
(908) 439-2200, ext. 5378
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644