21st Jan 2016 12:23
LONDON (Alliance News) - Aviva PLC on Thursday said its Canadian business will acquire the home and motor operations of RBC Insurance for GBP281.0 million, in a move to beef up what is the second largest general insurance business in the group.
The deal will be boost Aviva's operating earnings and increase Aviva Canada's annual gross written premiums by about 20%, the FTSE 100 company said in a statement. In 2014, Aviva Canada's gross written premium was GBP2.2 billion.
In addition to the acquisition, Aviva Canada will provide general insurance products to customers of RBC under an exclusive 15-year deal, providing the insurer with an additional distribution channel to its 1,500 broker partners.
"This new partnership extends Aviva's presence in general insurance, brings additional diversification benefits to the group and presents excellent opportunities for revenue and earnings growth in the attractive Canadian market. RBC has a formidable brand and loyal customer following whilst Aviva brings deep insurance expertise - all the makings of an excellent partnership," Chief Executive Mark Wilson said.
The deal is expected to close in the third quarter of 2016.
Shares in Aviva were up 1.1% at 455.20 pence on Thursday shortly after midday.
By Samuel Agini; [email protected]; @samuelagini
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