Deal will boost Aviva Canada’s GWP by 20%
Aviva Canada has agreed to buy the RBC Insurance’s home and motor unit, RBC General Insurance, for £281m.
RBC Insurance is the insurance division of the Royal Bank of Canada (RBC).
Aviva Canada will also enter an exclusive 15-year deal to provide general insurance products to RBC Insurance’s existing and future customers.
The deal will boost Aviva Canada’s annual gross written premium (GWP) by approximately 20%. Aviva Canada wrote £2.2bn of gross premium in 2014.
The transaction is subject to regulatory approvals and is expected to close in the third quarter this year.
Aviva group chief executive Mark Wilson (pictured) said: “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.”
Global general insurance chairman Maurice Tulloch, who is leading the deal, added: “This is a landmark deal which underlines our confidence in a key market for Aviva, and one where we see future growth.
“Partnering with RBC Insurance to provide their customers with a broad range of general insurance products, backed by the latest digital technology and world-class claims and underwriting, extends Aviva’s leadership in general insurance.”