Aviva’s Canadian division has concluded the acquisition of car substitute insurance coverage supplier Optiom for £100m ($127.17m).
The deal bolsters the presence of Aviva within the Canadian market, notably within the specialty traces section. Additionally it is claimed to boost 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, identified for its versatile fee choices, is a key supplier of car substitute insurance coverage in Canada, working as a managing basic 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.
Entry essentially the most complete Firm Profiles
in the marketplace, powered by GlobalData. Save hours of analysis. Acquire aggressive edge.
Firm Profile – free
pattern
Thanks!
Your obtain e mail will arrive shortly
We’re assured in regards to the
distinctive
high quality of our Firm Profiles. Nevertheless, we wish you to take advantage of
helpful
choice for your online business, so we provide a free pattern which you could obtain by
submitting the beneath kind
By GlobalData
As an underwriting capability supplier for Optiom, Aviva Canada sees this as a chance to deepen its involvement in an interesting enterprise line and to safe a dependable and rising supply of distribution earnings.
Optiom’s robust distribution community can also be anticipated to allow Aviva Canada to achieve extra clients.
Primarily based in Calgary, Optiom was established in 2008 and has 100 staff. It’s licensed throughout all territories and provinces besides Quebec.
The corporate has so far bought greater than 600,000 insurance policies by its community, comprising greater than 900 dealer places of work 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.
