Travelers, a large insurance carrier, has agreed to buy cyber InsurTech business Corvus for $435 million.
Travelers, founded in 1853, is an insurance industry mainstay, offering business, personal property, and liability insurance products and services. Corvus, founded in 2017, is at the cutting edge of cyber insurance, employing unique technology to provide comprehensive insurance solutions.
The $435 million acquisition is a strategic move by Travelers to strengthen its capabilities in the cyber insurance market. Travelers’ desire to combine Corvus’ advanced underwriting algorithms, cyber vulnerability scanning technologies, and digital connectivity with clients and distribution partners is driving the transaction. This is in line with Travelers’ innovation ambition in order to remain ahead of the continuously changing cyber risk scenario.
Travelers, with its large network and resources, is an insurance industry mainstay, providing a wide range of risk management solutions. Corvus, on the other hand, is an InsurTech pioneer that specializes in cyber insurance underwriting and is powered by artificial intelligence. It offers a portfolio of cyber sales, service, and support capabilities and has made considerable inroads into the excess and surplus cyber insurance market. Corvus’ platform also stands out for its capacity to continuously identify and mitigate policyholders’ cyber vulnerability.
The agreement offers a strong integration of Corvus’ expertise with Travelers’ existing market presence, including the renewal of Corvus’ considerable book of business worth more than $200 million. Travelers plans to use Corvus’ skills to boost the return profile of its cyber portfolio and maintain its market leadership.
Travelers and Corvus already have a strong operational partnership, with cyber capacity contracts in place in both the United States and Europe. This acquisition is expected to strengthen that partnership by bringing Corvus’ experience and technology into the Travelers fold, with finance provided by Travelers’ internal resources. The transaction is expected to close in the first quarter of 2024, subject to regulatory approvals and usual closing conditions.
Alan Schnitzer, Chairman and CEO of Travelers, emphasized the significance of the transaction, “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 CEO Madhu Tadikonda expressed excitement about teaming up with Travelers, echoing the notion of a shared mission and complementary strengths, “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.”