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Aviva’s Canadian division has concluded the acquisition of auto substitute insurance coverage supplier Optiom for £100m ($127.17m).
The deal bolsters the presence of Aviva within the Canadian market, significantly within the specialty strains section. It is usually claimed to reinforce the corporate’s distribution skills.
Aviva introduced the acquisition of Optiom from Novacap in addition to numerous different minority shareholders on 27 November final 12 months.
Optiom, recognized for its versatile cost choices, is a key supplier of auto substitute insurance coverage in Canada, working as a managing normal agent (MGA).
The deal is alleged to be a major addition to capital-light companies of Aviva, which already represent over half of its portfolio.
It guarantees to broaden Aviva Canada’s footprint in a profitable area of interest of the Canadian insurance coverage sector.
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As an underwriting capability supplier for Optiom, Aviva Canada sees this as a possibility to deepen its involvement in an interesting enterprise line and to safe a dependable and rising supply of distribution revenue.
Optiom’s robust distribution community can also be anticipated to allow Aviva Canada to achieve extra clients.
Based mostly in Calgary, Optiom was established in 2008 and has 100 workers. It’s licensed throughout all territories and provinces besides Quebec.
The corporate has to this point offered greater than 600,000 insurance policies by means of its community, comprising greater than 900 dealer workplaces and 330 sellers.
In the meantime, final month, Aviva introduced it expects to safe an additional £80m in proceeds from the sale of its shares in Singapore Life Holdings (Singlife).
An settlement with Japan’s Sumitomo Life Insurance coverage Firm for Aviva’s 25.9% stake in Singlife, together with two debt devices, was agreed upon in September, with a complete anticipated return of £930m.
The transaction is slated for completion within the first quarter of this 12 months.
Aviva is planning to allocate the divestiture proceeds in direction of reinvestment, rewarding shareholders, or exploring additional mergers and acquisitions.
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