Travelers, one of America’s largest insurance companies, has acquired a majority stake in the Canadian fintech startup Zensurance.
According to documents obtained by BetaKit, The Travelers Companies – through a wholly-owned subsidiary – has purchased approximately 60% of Zensurance’s issued and outstanding shares, leaving Zensurance CEO Danish Yusuf and CTO Sultan Mehrabi with about a third of ownership in the company.
Sources close to the matter have revealed that Travelers paid approximately CA$16 million (about $12,250,000) for the deal.
Zensurance aids businesses in the purchase and management of insurance packages through its proprietary platform. Over 2,500 businesses have signed on with Zensurance, and the startup works with more than 40 insurers.
Currently, Zensurance is operating independently of Travelers. Speaking with BetaKit, both Yusuf and Mehrabi confirmed that the fintech remains unfazed by the acquisition – in fact, the fintech aims to continue working with even more insurance companies. Zensurance is also looking to secure the authority to bind insurance contracts in real-time through its platform, instead of relying on insurance companies to complete the process.
In terms of commercial property insurance, Travelers is the second largest company in the US. The company is also the second largest writer of personal insurance in America, through independent agents.