May 27 (Reuters) - Travelers Cos ( TRV ) said on Tuesday

it has agreed to sell its Canadian personal insurance business

and majority of its commercial insurance operations in the

country to Definity Financial ( DFYFF ) in a deal valued at $2.4

billion.

The transaction adds to a wave of consolidation in the North

American insurance sector as firms streamline operations and

sharpen geographic focus amid rising capital costs and evolving

regulatory demands.

By selling its Canadian personal and commercial insurance

units, Travelers joins other global insurers in reshaping

portfolios to prioritize profitability and scale in core

markets.

Definity said the deal will establish it as the

fourth-largest property and casualty insurer in Canada, with the

transaction immediately accretive to its operating earnings per

share.

The company also expects the acquisition, expected to close

in the first quarter of 2026, to add roughly $1 billion in

annual premiums to its personal lines business.

RBC Capital Markets is acting as Definity's financial

adviser, while Jefferies LLC advised Travelers on the deal.