Definity Financial to acquire Travelers Canada for $3.3 billion

What’s going on at Definity?

Definity Financial has announced its agreement to acquire the Canadian operations of The Travelers Companies in a $3.3-billion transaction. The deal will see Definity absorb the majority of Travelers’ Canadian insurance business, significantly expanding its market share and positioning it as the fourth-largest property and casualty (P&C) insurer in Canada by annual premiums.

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Details

The acquisition will add approximately $1.6 billion in annual gross written premiums to Definity’s portfolio, increasing its total to $6 billion.

• Definity, which currently ranks sixth among Canadian P&C insurers, will move to fourth place following the deal.
• Travelers Canada, acquired by the U.S.-based Travelers in 2013 for $1.1 billion, employs more than 1,400 people in Vancouver, Calgary, Toronto, Ottawa, and Montreal.
• Definity plans to integrate Travelers’ Canadian operations under a single brand and retain all existing employees.
• The transaction includes Travelers’ personal, commercial, and specialty insurance businesses in Canada, excluding its Canadian surety business, which Travelers will retain.

Definity currently operates multiple insurance brands, including Sonnet Insurance, Petline Insurance, and Family Insurance Solutions.

ℹ️ Wondering about your rights when your employers sells the business? Watch the video below or check out the full episode in our TV section.

Who pays severance if Definity doesn’t keep certain Canadian employees?

In Canada, the “seller” of the business is responsible for providing proper compensation to staff who lose their job.

If Definity provides you with an employment offer, and you have a good reason for why you don’t want to accept it (i.e. different hours or pay), contact an experienced employment lawyer at Samfiru Tumarkin LLP.

We’ll help you secure the severance pay you’re entitled to.

Even without a good reason you can still get severance, but it’s very likely that you will only receive your minimum entitlements.

LEARN MORE
• Sale of business in Ontario: Rights to severance
• Rights to severance in Alberta when your employer sells the business
• Employer sold the business in B.C.? Know your rights to severance

Can Definity make major changes to the jobs of employees at Travelers?

In Canada, non-unionized employees at Travelers don’t have to accept substantial changes to their job that Definity might try to enforce.

Major modifications, such as a demotion, longer shifts, or reduced pay, are illegal.

When significant adjustments are made to the terms of your employment without your consent, there’s a very good chance that you can treat it as a constructive dismissal.

In this situation, the law allows you to quit your job and pursue full severance pay.

If you believe you’ve been constructively dismissed, don’t resign before contacting our firm.

ADDITIONAL RESOURCES
• Can my employer make changes to my job in Ontario?
• Job changes in Alberta: What employees need to know
• Changes to your employment in B.C.: Your rights

New employment contracts for Travelers staff

If you work for Travelers in Canada, and you receive a new employment contract from Definity, take the time to carefully review it before signing it.

In many cases, these agreements take away key protections that would otherwise be available to non-unionized employees, including:

• Eliminating past service: The new owner might attempt to reduce or eliminate your years of service with your previous employer. Don’t sacrifice your seniority. Length of service is a key factor when determining how much severance pay you are entitled to.
• Reducing severance pay: Some employers try to use a termination clause to reduce your severance entitlements to the bare minimum. Instead of months of pay, you might only receive a few weeks’ pay if you are fired without cause or let go.
• Ability to make changes: The new owner might attempt to add a clause that gives them the right to change aspects of your job (i.e. hours or pay) without your permission or lay you off without penalty.

Employers in Canada can’t legally force non-unionized workers to sign a new employment contract immediately or a few days after receiving it.

SEE ALSO
• Starting a new job? Here’s how an employment contract could limit your rights
• Employment Law Show: 5 things to know about employment contracts
• Employment Law Show: Things to never do before seeking legal counsel

Workplace issue? Talk to our team

Since 2007, the experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals resolve their workplace issues.

Whether you’re in Ontario, Alberta, and B.C., our lawyers can review your situation, enforce your rights, and ensure you receive the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.