news Insurance

Aviva to acquire Canadian vehicle replacement insurance business, Optiom

  • Aviva to acquire Optiom for consideration of c.£100m1
  • Supports Aviva’s capital-light growth in attractive Canadian market
  • Strengthens Aviva Canada’s specialty lines business and distribution capabilities

Aviva plc (“Aviva”) today announces the acquisition of Optiom O2 Holdings Inc (“Optiom”) from Novacap and other minority shareholders for consideration of c.£100m1 (c.CAD$170m). Optiom, which operates as a managing general agent (“MGA”), is a leading provider of vehicle replacement insurance in Canada and offers flexible payment options to customers.

The acquisition expands Aviva’s capital-light businesses, which make up over half of Aviva’s portfolio, and grows Aviva Canada’s presence in a profitable segment of the Canadian insurance market. As an existing underwriting capacity provider for Optiom, the transaction provides an opportunity for Aviva Canada to increase its access to an attractive line of business, while securing a stable, growing stream of distribution income. Optiom’s strong distribution relationships will allow Aviva Canada to reach additional customers, who will receive best in class service alongside existing Aviva Canada customers.

Tracy Garrad, Chief Executive Officer of Aviva Canada, said:

“The acquisition strengthens our offering and distribution capabilities in a highly attractive segment of the Canadian insurance market. 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 acquisition is consistent with our capital management framework, which remains unchanged. We continue to anticipate more regular and sustainable returns of surplus capital.

The transaction is subject to customary closing conditions including regulatory approvals and is expected to close in Q1 2024.

-ENDS-

Inquiries:

Media:

Andrew Reid
+44 (0)7800 694 276

Sarah Swailes
+44 (0)7800 694 859

Marion Fischer
+44 (0)7800 693 219

Analysts:

Rupert Taylor Rea
+44 (0)7385 494 440

Michael O’Hara
+44 (0)7837 234 388

About Optim

Founded in 2008, Optiom is headquartered in Calgary with over 100 employees. Optiom originated in British Columbia and has now become Canada’s largest provider of vehicle replacement insurance licensed across all provinces and territories in Canada, excluding Quebec. Optiom distributes its products through a network of over 330 dealers and over 900 broker offices and has sold over 600,000 policies since inception. Optiom offers premium financing solutions through an associated company within the Optiom group.

Notes to editors:

1. Based on GBP/CAD spot rate of 1.72 as at 24 November 2023.

  • We are the UK’s leading Insurance, Wealth & Retirement business and we operate in the UK, Ireland and Canada. We also have international investments in India and China.
  • We help our 18.7 million customers make the most out of life, plan for the future, and have the confidence that if things go wrong we’ll be there to put it right.
  • We have been taking care of people for more than 325 years, in line with our purpose of being ‘with you today, for a better tomorrow’. In 2022, we paid £23.2 billion in claims and benefits to our customers.
  • In 2021, we announced our ambition to become Net Zero by 2040, the first major insurance company in the world to do so. We are aiming to have a cut of 25% in the carbon intensity of our investments by 2025 and of 60% by 2030; and Net Zero carbon emissions from our own operations and supply chain by 2030. While we are working towards our sustainability ambitions, we acknowledge that we have relationships with businesses and existing assets that may be associated with significant emissions. Find out more about our climate goals at www.aviva.com/climate-goals and our sustainability ambition and action at www.aviva.com/sustainability
  • Aviva is a Living Wage, Living Pension and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at https://www.aviva.com/about-us/our-people/
  • As at 30 June 2023, total Group assets under management at Aviva Group were £358 billion and our estimated Solvency II shareholder capital surplus as at 30 September 2023 was £7.6 billion. Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
  • For more details on what we do, our business and how we help our customers, visit www.aviva.com/about-us
  • The Aviva newsroom at www.aviva.com/newsroom includes links to our spokespeople images, podcasts, research reports and our news release archive. Sign up to get the latest news from Aviva by email.
  • You can follow us on:
  • For the latest corporate films from around our business, subscribe to our YouTube channel: www.youtube.com/user/aviva

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button