Transaction accelerates deployment of cutting-edge cyber capabilities
In one of the bigger New England insurtech deals of late, Hartford-based Travelers has announced its acquisition of Boston-based Corvus Insurance Holdings for approximately $435 million. Founded in 2017 by Phil Edmunson after his exhaustive research into Insurtech, the company has grown over the past six years, both organically and through impressive funding, to become an industry-leading cyber insurance platform.
More specifically, Corvus is powered by a proprietary, AI-driven cyber risk platform, with a main focus on the middle-market excess and surplus cyber insurance marketplace. According to the company, through the Corvus platform, it effectively identifies vulnerabilities throughout the policy period to reduce customers’ exposure to cyber events. Corvus’ platform also delivers distribution efficiencies to insurance agents and brokers. Driven by its proven technology and dynamic team, Corvus has grown its business at attractive loss ratios.
Madhu Tadikonda, Chief Executive Officer of Corvus, said, “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.”
“We continue to make thoughtful investments in strategic capabilities that advance our innovation agenda,” said Alan Schnitzer, Chairman and Chief Executive Officer of Travelers. “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.”
“Corvus’ expertise in excess and surplus lines for cyber, along with our industry-leading distribution position in the admitted markets, is a powerful combination,” said Jeff Klenk, Executive Vice President and President of Bond & Specialty Insurance at Travelers. “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.”
Travelers says it will fund the transaction from internal resources, with the deal expecting to close in the first quarter of 2024, pending the customary approvals and other closing conditions. While the acquisition is strategically important, the expected impact to earnings in the near term is immaterial.
