Aviva has completed the acquisition of Probitas Holdings (Bermuda) Limited for a consideration of £249 million, marking the firm’s entry into the Lloyd’s market.
If you recall, back in March, it was revealed that Aviva would acquire 100% of Probitas Holdings (Bermuda) Limited, the ultimate holding company of the Probitas Group.
As covered back then, the transaction includes the acquisition of Probitas’s fully integrated Lloyd’s platform, encompassing its Corporate Member, Managing Agent, international distribution entities and tenancy rights to Syndicate 1492. Aviva noted that the Lloyd’s market represents a major source of untapped growth.
“This is a key milestone for our Global Corporate & Specialty (GCS) business as we re-enter the Lloyd’s market. The Probitas business, when combined with Aviva’s existing underwriting capabilities, broker relationships and capital base, will enhance Aviva’s service offering and proposition to meet more of our shared customers’ needs,” the firm added.
Jason Storah, Chief Executive Officer of Aviva UK & Ireland, commented, “I’m delighted to confirm that Probitas is now part of the Aviva Group. Our ability to access the Lloyd’s market, represents a significant growth opportunity for us and further enhances our broker and customer proposition.
“I am also delighted to officially welcome Ash Bathia, CEO, Probitas to my leadership team. Ash brings with him a wealth of market knowledge, which when combined with our already strong GCS leadership team under Matt Washington, will accelerate the growth of this area of the business.
“Following positive engagement over the last few months, I’m delighted to formally welcoming Probitas into Aviva and bringing our businesses together.”
Ash Bathia, CEO, Probitas, said of the deal back in March, “I’m delighted to announce this deal today because Aviva is the ideal partner for Probitas going forward and I’m truly excited about the combined opportunities ahead for our business and staff.
“The success of Probitas is built on solid foundations; a fantastic team of people, rigorous underwriting discipline, market-leading actuarial and analytics capability and a broad distribution network, all underpinned by a strong set of values and corporate culture.
“As Probitas embarks on the next stage of its evolution it was important to find a partner with the financial strength and ambition to allow us to increase our share of the vast global specialty business by using our extensive Lloyd’s licences combined with Aviva’s brand strength, scale and distribution reach.”
It is worth noting that Saudi Re had a 49.9% stake in Probitas Holdings (Bermuda), which accounted for a notable £123 million of the above sale.
Speaking on the sale of the firm’s stake, Ahmad Al-Jabr, Acting CEO of Saudi Re, said, “This transaction aims to enhance the company’s competitive position and financial position, enabling it to redirect investments to develop growth opportunities in both local and international markets.
“The transaction offered attractive terms, and the proceeds from the sale will strengthen the company’s capital base and increase its solvency margin. This will create significant value for shareholders, generating a return more than five times the initial investment.”
