Aviva has announced the acquisition of Optiom O2 Holdings Inc from Novacap and other minority shareholders for a consideration of c.£100m (c.CAD$170m).
Optiom, which operates as a managing general agent (MGA), provides vehicle replacement insurance in Canada.
According to Aviva, the acquisition will help expand its capital-light businesses, which make up over half of Aviva’s portfolio.
The firm noted it will also assist the growth of 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,” Aviva explained.
The firm continued, “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.”
The transaction is subject to customary closing conditions including regulatory approvals and is expected to close in Q1 2024.
Tracy Garrad, Chief Executive Officer of Aviva Canada, commented, “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.”
