Aviva to accumulate automobile substitute insurance coverage firm Optiom

Aviva has agreed to accumulate Canada-based automobile substitute insurance coverage supplier Optiom in a deal price round £100m ($125m).

Optiom, which operates as a managing common agent (MGA), will probably be acquired from Canada’s non-public fairness agency Novacap and different undisclosed minority shareholders.

The acquisition is anticipated to broaden Aviva’s capital-light companies, which make up greater than half of its portfolio.

It is usually anticipated to strengthen the specialty strains enterprise and distribution capabilities of Aviva Canada.

Aviva, as an present underwriting capability supplier for Optiom, additionally expects the transaction to offer a possibility to extend its entry to a sexy line of enterprise.

Aviva Canada CEO Tracy Garrad stated: “The acquisition strengthens our providing and distribution capabilities in a extremely engaging section of the Canadian insurance coverage market. We all know Optiom properly by way of our present relationship and are enthusiastic about what we will do collectively to higher serve our brokers and clients.”

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Aviva stated the settlement complies with its capital administration framework.

In its press assertion, Aviva stated: “The acquisition is according to our capital administration framework, which stays unchanged. We proceed to anticipate additional common and sustainable returns of surplus capital.”

Topic to customary closing circumstances and receipt of regulatory approvals, the transaction is anticipated to shut within the first quarter of 2024.

Based in 2008, Optiom is engaged in offering automobile substitute insurance coverage licensed throughout all provinces and territories in Canada, besides Quebec.

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