US insurer The Travelers Companies has signed a deal to buy cyber insurance managing general underwriter (MGU) Corvus Insurance for around $435m.
Set up in 2017, Corvus Insurance is powered by proprietary artificial intelligence (AI) technology and offers a wide array of cyber sales, service and support solutions.
Serving both wholesale brokers and major retail producers, the Corvus team is well-known in the middle-market excess and surplus cyber insurance industry.
During the policy period, Corvus identifies vulnerabilities using its platform to reduce customers’ exposure to cyber incidents, Travelers said.
In addition, Corvus’ platform offers distribution efficiency to insurance brokers and agents.
A personal, business and speciality insurance provider, Travelers plans to finance the acquisition using its internal funds.
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Subject to regulatory approval and other conditions, the deal is expected to be completed in the first quarter (Q1) of 2024.
Travelers executive vice-president and president of bond and speciality insurance Jeff Klenk said: “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’ $200m-plus 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 US and Europe, and we are thrilled to have them join the Travelers family.”
Corvus CEO Madhu Tadikonda 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.”
In September 2023, Corvus and Travelers reached an agreement for the latter to act as a capacity provider.