29th November 2023
Aviva has announced the acquisition of Optiom O2 Holdings from Novacap and other minority shareholders for consideration of c.£100m(c.CAD$170m. Optiom, which operates as a managing general agent, is a leading provider of vehicle replacement insurance in Canada and offers flexible payment options to customers.
The acquisition expands Aviva’s capital-light businesses, which make up over half of Aviva’s portfolio, and grows Aviva Canada’s presence in a profitable segment of the Canadian insurance market. As an existing underwriting capacity provider for Optiom, the transaction provides an opportunity for Aviva Canada to increase its access to an attractive line of business, while securing a stable, growing stream of distribution income. Optiom’s strong distribution relationships will allow Aviva Canada to reach additional customers, who will receive best in class service alongside existing Aviva Canada customers.
Tracy Garrad, ceo of Aviva Canada, said: “The acquisition strengthens our offering and distribution capabilities in a highly attractive segment of the Canadian insurance market. We know Optiom well through our existing relationship and are excited about what we can do together to better serve our brokers and customers.”
The acquisition is consistent with the insurer's capital management framework, which remains unchanged-it will continue to anticipate further regular and sustainable returns of surplus capital.
The transaction is subject to customary closing conditions including regulatory approvals and is expected to close in Q1 2024.
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