Foreign insurers are reassessing their Canadian retail operations. According to the PricewaterhouseCoopers (PwC) Canada 2026 Mid-Year M&A Update, released June 23, that retreat is creating a window for domestic carriers to acquire platforms, books of business, and distribution capability.
The report identifies insurance as one of three sectors where this pattern is most active.
In June 2021, Intact Financial Corporation absorbed RSA Insurance's Canadian operations as part of a $12.4 billion global acquisition. That deal removed one of the market's largest foreign-parented carriers from independent operation.
Travelers Canada followed, selling at 1.8 times book value at a time when industry dynamics favoured property and casualty insurers.
Definity Financial Corporation completed that acquisition on January 2, 2026, paying approximately $3.3 billion. The deal establishes Definity as the fourth-largest overall P&C insurer in Canada and strengthens its position in the broker channel.
Wawanesa Mutual Insurance Company has entered into an agreement to acquire Everest Insurance Company of Canada, the Canadian retail insurance operations of Everest Group Ltd. That deal is expected to close in Q4 2026, subject to regulatory approvals.
Definity's Q1 2026 results show policy conversion began on schedule in the second quarter for most Travelers Canada policies, supported by strong broker engagement and a comprehensive communications plan.
All new business is now written as a single Definity offering. New brokers have been onboarded and overall broker engagement remains high across Canada.
The Wawanesa-Everest deal is projected to add approximately $305 million in annual commercial premiums – an increase of around 30% on Wawanesa's existing commercial lines volume. It will add cyber, aviation, marine, professional liability, and property and casualty coverages to Wawanesa's book.
Wawanesa has stated it intends to operate Everest Canada separately, retaining and supporting key personnel to continue leading the business and deepening relationships with broker partners.
Evan Johnston, president and chief executive officer of Wawanesa, told Canadian Underwriter the deal presents an opportunity to offer existing brokers a broader product range. "I think it does nothing but strengthen the relationships with our existing brokers and may result in strategic conversations with new brokers. We have an opportunity now to provide our existing brokers with a different suite of products than we've had before," Johnston said.
A transition services agreement will also be in place, under which an Everest affiliate will provide certain transition services to Everest Canada for a period following close.
Analysis published by the Globe and Mail in June 2025 identified Allstate Insurance Co. of Canada and Aviva Insurance Co. of Canada as two foreign-parented carriers facing similar strategic pressures to those that led Travelers to exit.
Aviva is the second-largest general insurer in Canada. Allstate operates under a Chicago-based parent.
Neither company has announced any intention to sell its Canadian operations.
Our coverage of how Canada's P&C market is tightening at the top found that the top 10 insurers now hold nearly 59% of total market share, according to AM Best data.
PwC's report points to an uncertain backdrop heading into H2 2026, with Canada's real GDP growth expected to remain below potential at 0.9% to 1.3% in 2026 and inflation projected at 2.5% to 3.0%.
Total deal value across all Canadian sectors was $64 billion in Q1 2026, down from last year's quarterly average of $97 billion.
Sean Rowe, national leader for Deals Markets and Value Creation at PwC Canada, said companies are not waiting for conditions to improve. "They're looking at where they need more scale, stronger supply chains or new capabilities, and using deals to get there faster," Rowe said.
