TIDMAV.
RNS Number : 6057M
Aviva PLC
21 January 2016
21 January 2016
AVIVA ACQUIRES RBC GENERAL INSURANCE COMPANY
AND SIGNS EXCLUSIVE LONG TERM STRATEGIC AGREEMENT
Aviva plc ("Aviva") today announces that its Canadian business,
Aviva Canada, will acquire RBC General Insurance Company, the
existing home and motor insurance business of RBC Insurance. Aviva
Canada will also enter into an exclusive 15 year strategic
agreement with RBC Insurance to provide a full range of general
insurance products to existing and future RBC Insurance customers.
RBC Insurance customers will also benefit from Aviva Canada's
expertise in claims, underwriting and new product development.
The acquisition of RBC Insurance's home and motor insurance
business consolidates Aviva's position as a leading general insurer
in Canada. This deal provides Aviva Canada with an additional
distribution channel to complement its long standing commitment to
the independent broker channel, where it serves 1500 independent
broker partners.
Under the agreement, Aviva will pay RBC Insurance GBP281
million1, on completion, subject to customary completion
adjustments. The transaction will be accretive to Aviva's operating
earnings and increase Aviva Canada's annual gross written premiums
(GWP) by approximately 20%2. In 2014, Aviva Canada's GWP was GBP2.2
billion.
Canada is a significant market for Aviva, the second largest
general insurance business in the group, and continues to perform
strongly. At HY15 Aviva Canada increased operating profit 59% to
GBP132 million (HY14: GBP83m); more than doubled underwriting
profit to GBP82 million (HY14: GBP30m) and the Combined Operating
Ratio improved to 91.9% (HY14: 96.8%).
The transaction is subject to customary closing conditions,
including receipt of required regulatory approvals and is expected
to close in the third quarter of 2016.
Mark Wilson, Group Chief Executive Officer, 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."
Enquiries:
Media
Andrew Reid +44 (0)20 7662 3131
Yasmin Saleh +44 (0)20 7662 8710
Analysts
David Elliot +44 (0)20 7662 8048
Notes to editors:
-- Aviva Canada is one of the leading property and casualty
insurance groups in Canada providing home, auto and business
insurance to more than three million customers. The company is a
wholly-owned subsidiary of UK-based Aviva plc and has more than
3,000 employees, 25 locations and 1,500 independent broker
partners. Aviva Canada is the second largest general insurance
business in the Aviva Group. General insurance is a key growth area
for Aviva and a core component of the Group's customer composite
strategy, providing customers with life insurance, general
insurance, health insurance and asset management.
-- Aviva Canada invests in positive change through the Aviva
Community Fund, Canada's longest running online community funding
competition. Since its inception in 2009, the Aviva Community Fund
has awarded $6.5 million to 222 charity groups across Canada.
-- Aviva provides life insurance, general insurance, health
insurance and asset management to 34* million customers, across 16
markets worldwide
-- In the UK we are the leading insurer serving one in every
four households and have strong businesses in selected markets in
Europe, Asia and Canada. Our shares are listed on the London Stock
Exchange and we are a member of the FTSE100 index.
-- Aviva's asset management business, Aviva Investors, provides
asset management services to both Aviva and external clients, and
was managing over GBP260 billion in assets as at 30 June 2015.
-- Aviva helps people save for the future and manage the risks
of everyday life; we paid out GBP24.6 billion in benefits and
claims in 2014.
-- By serving our customers well, we are building a business
which is strong and sustainable, which our people are proud to work
for, and which makes a positive contribution to society.
-- The Aviva media centre at http://www.aviva.com/media/
includes company information, images, and a news release
archive.
-- For an introduction to what we do and how we do it, please click here http://www.aviva.com/about-us/aviva/
-- For broadcast-standard video, please visit http://www.aviva.com/media/b-roll-library/
-- Follow us on twitter: www.twitter.com/avivaplc/
-- RBC Insurance(R), through its operating entities, provides a
wide range of travel, life, health, home, auto, wealth and
reinsurance products and solutions, as well as creditor and
business insurance services to individual, business and group
clients. RBC Insurance has more than four million clients globally.
We are one of the largest Canadian bank-owned group of insurance
companies, and among the fastest growing insurance organizations in
the country. RBC Insurance employs more than 3,000 employees, and
is the brand name for the insurance operating entities of Royal
Bank of Canada.
* Before the deduction of Aviva and Friends Life overlapping
customers.
[1] CAD$ 582 million, converted at an exchange rate of CAD$
2.07/GBP 1
[2] Based on RBC General Insurance 31 October 2015 and Aviva
Canada 31 December 2014 Annual Financial Statements
This information is provided by RNS
The company news service from the London Stock Exchange
END
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