Travelers to pay $1.125 billion for Dominion of Canada General Insurance

TORONTO – Dominion of Canada General Insurance Co. is being sold for about $1.125 billion in cash by its parent company E-L Financial Corp. (TSX:ELF).

The buyer is Travelers Companies Inc. (NYSE:TRV), a major U.S. insurance company.

Dominion Insurance traces its history to 1887, when its first president was Sir John A. Macdonald — Canada’s first prime minister.

Despite its long history, Dominion is a relatively low-profile provider of property and casualty insurance.

E-L Financial says it hasn’t decided what to do with money from the sale, which is expected to close before the end of the year subject to regulatory approvals.

E-L says it will continue to own 80 per cent of Empire Life Insurance, which underwrites life and health insurance policies and provides investment products.