Aviva’s shares rallied yesterday as the City was abuzz with talk that Zurich Financial Services was preparing a £17.2bn offer.
The UK’s largest general insurer’s share price closed 16.9p higher at 419.95p as rumours spread that Zurich was preparing a £6-a-share offer. Investors are attracted to Aviva’s 6% yield.
On the general insurance side, investors believe Zurich is a good fit with Aviva as it would marry the Swiss-based insurer’s corporate strength in the UK with Aviva’s strong SME footprint to create a powerful and diversified business.
Zurich’s is aiming to grow its UK personal lines book after cutting back last year, and a consolidation with Aviva would create a personal lines giant of equal strength to Royal Bank of Scotland Insurance, which despite recent problems is still the biggest player in the UK.
The prospect of a Zurich and Aviva consolidation is speculative, but the takeover talk shows the City expects some kind of consolidation in the UK general insurance/life sector which is one of the most mature markets in the world.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
