Aviva has agreed to accumulate Canada-based automobile substitute insurance coverage supplier Optiom in a deal value round £100m ($125m).

Optiom, which operates as a managing normal agent (MGA), will likely be acquired from Canada’s non-public fairness agency Novacap and different undisclosed minority shareholders.

The acquisition is anticipated to broaden Aviva’s capital-light companies, which make up greater than half of its portfolio.

Additionally it is anticipated to strengthen the specialty traces enterprise and distribution capabilities of Aviva Canada.

Aviva, as an current underwriting capability supplier for Optiom, additionally expects the transaction to supply a possibility to extend its entry to a beautiful line of enterprise.

Aviva Canada CEO Tracy Garrad mentioned: “The acquisition strengthens our providing and distribution capabilities in a extremely engaging section of the Canadian insurance coverage market. We all know Optiom effectively by way of our current relationship and are enthusiastic about what we will do collectively to higher serve our brokers and prospects.”

Aviva mentioned the settlement complies with its capital administration framework.

In its press assertion, Aviva mentioned: “The acquisition is in step with our capital administration framework, which stays unchanged. We proceed to anticipate additional common and sustainable returns of surplus capital.”

Topic to customary closing circumstances and receipt of regulatory approvals, the transaction is anticipated to shut within the first quarter of 2024.

Based in 2008, Optiom is engaged in offering automobile substitute insurance coverage licensed throughout all provinces and territories in Canada, besides Quebec.

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