The Canadian arm of UK-based Aviva has made a significant purchase as it looks to expand its presence in the country.
Aviva Canada has finalised its acquisition of RBC General Insurance in a deal reportedly worth $403 million. It will boost the insurer’s reach in the country and increase gross written premiums by around $800 million with 550 RBC insurance staff joining the firm.
Originally announced in January this year, the purchase sees Aviva take control of some of RBC’s home and auto insurance manufacturing capabilities – including underwriting, claims and product development.
In addition, the companies have made a 15-year strategic agreement. As part of the deal Aviva Canada will provide policy administration and claims services, while RBC will have access to Aviva’s suite of property and casualty products.
Speaking about the deal, Aviva’s CEO Mark Wilson commented at the time: “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.”
The acquisition follows on from Aviva’s purchase of Friends Life for £5.6 billion last December.
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