More mergers in Canadian P&C industry

It’s been a busy summer for mergers and acquisitions in the Canadian p&c insurance industry. The Travelers Companies, Inc. (NYSE: TRV) announced June 10 that it has agreed to acquire The Dominion of Canada General Insurance Company from E-L Financial Corporation Limited (TSX: ELF) for approximately $1.1 billion in cash, subject to adjustment. The Dominion and Travelers’ Canadian operations will be integrated and the combined organization will remain headquartered in Toronto. Meanwhile, global insurance brokerage Hub International Limited has agreed to be acquired by a San Francisco private equity firm for $4.4 billion in an announcement on August 6. Under the terms of the agreement, investment funds managed by Hellman & Friedman will hold a majority interest in the company, while members of Hub’s senior management will continue to have a significant equity position. The Chicago-based brokerage, which has roughly 6,500 employees in the United States, Canada and Brazil, is expected to have 2013 revenue of about $1.2 billion, after the annualized impact of acquisitions, according to Hub’s statement.