Travelers is paying approximately $435 million to acquire the tenth-largest fintech company in Massachusetts.
The Travelers Companies Inc. announced Friday it had agreed to acquire Corvus Insurance Holdings Inc. The Boston-based company was founded in 2017 and is a cyber insurance managing general underwriter. The deal is expected to close in the first quarter of 2024.
Travelers CEO Alan Schnitzer said this acquisition accelerates the company’s 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.”
Jeff Klenk, president of bond and specialty insurance at Travelers, said this deal gives them the opportunity to renew “Corvus’ $200+ million book of business” and enhance its own cyber portfolio.
Several years ago, Corvus was part of an insurtech boom in Massachusetts that saw companies in this sector raise significant capital — more than 40% of the total that had been raised by the sector in the Bay State in the first two decades of the 21st century.
Corvus went on to raise a $115 million Series C round in 2021 and make several acquisitions, including Maryland-based insurtech firm Wingman Insurance and a London-based underwriting company.
The Boston company is backed by Bain Capital Ventures, Hudson Structured Capital Management and .406 Ventures.
Last year, Corvus was ranked the ninth-largest fintech company in Massachusetts by the total number of employees statewide. At the time, Corvus reported having 284 employees across all of its offices and 75 in Massachusetts.
At the start of 2023, Corvus made layoffs impacting a swath of U.S. employees. CEO Madhu Tadikonda told BostInno the company had reduced its headcount by 14%. At the time, Tadikonda said they planned to expand in Europe.
Corvus has 254 employees with 50 in Massachusetts according to Business Journal research.
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