Aviva has announced the acquisition of Canadian vehicle replacement insurer Optiom in a deal worth around £100m as it looks to grow its foothold in the country.
The London-listed insurance giant said the deal would expand its capital-light businesses, which make up half of its portfolio.
It added that the acquisition would “increase its access to an attractive line of business, while securing a stable, growing stream of distribution income” in Canada.
Aviva has simplified its business under CEO Amanda Blanc, focussing on three core markets – the UK, Ireland and Canada – whilst ditching its businesses in other areas.
It has exited Poland and Hong Kong amongst others.
Aviva said Optiom’s “strong distribution relationships” would allow Aviva Canada to reach more customers.
The firm recently appointed former AXA Health boss Tracy Garrard as the new chief executive of its Candian business, taking over on 16 October.
“The acquisition strengthens our offering and distribution capabilities in a highly attractive segment of the Canadian insurance market,” Garrard said this morning.
“We know Optiom well through our existing relationship and are excited about what we can do together to better serve our brokers and customers.”
The transaction, which is subject to regulatory approval, is expected to close in the first quarter of 2024.