Travelers to acquire Corvus Insurance
Travelers has agreed to acquire Corvus Insurance for approximately $435 million.
Founded in 2017, Corvus is a cyber insurance MGA with operations in the US and several countries around the world. It targets companies with up to $1 billion in gross annual revenue and its carrier panel includes Core Specialty, Crum & Forster, Hudson Insurance Group, certain underwriters at Lloyd’s of London, R&Q Accredited, SiriusPoint, and Travelers.
The startup disclosed ~$170 million in funding and at one point it was valued at $750 million.
The transaction is expected to close in the first quarter of 2024, subject to regulatory approvals and other customary closing conditions.
“We continue to make thoughtful investments in strategic capabilities that advance our innovation agenda. 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.” – Alan Schnitzer, chairman and CEO of Travelers.
“Corvus’ expertise in excess and surplus lines for cyber, along with our industry-leading distribution position in the admitted markets, is a powerful combination. In addition to having the opportunity to renew Corvus’ $200+ million book of business, we will leverage Corvus’ leading capabilities to enhance the return profile of our already attractive cyber portfolio. We have a strong working relationship with the Corvus team through our existing cyber capacity arrangements in the United States and Europe, and we are thrilled to have them join the Travelers family.” – Jeff Klenk, EVP and president of Bond & Specialty Insurance at 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.” – Madhu Tadikonda, CEO of Corvus.