Aviva to enter Lloyd’s market through £242m Probitas acquisition

Aviva has announced the acquisition of Probitas 1492 in a £242m deal, as it looks to expand its presence in the Lloyd’s market.

Aviva has announced the acquisition of Probitas 1492 in a £242m deal, as it looks to expand its presence in the Lloyd’s market.

The Lloyd’s market represents a major source of untapped growth for Aviva, offering access to significant in-appetite premium volumes, international licences and broader distribution networks.

It will allow Aviva to capitalise on its existing underwriting capabilities, broker relationships and capital base.

Speaking on the acquisiton, Amanda Blanc, Group Chief Executive Officer of Aviva, said, “This acquisition is another step in our strategy to invest in Aviva’s future profitable growth. Aviva’s presence in the Lloyd’s market opens up new opportunities to accelerate growth in our capital-light General Insurance business.”

The move is expected to deliver attractive financial returns, with an estimated internal rate of return (IRR) in the high-teens. The transaction underscores Aviva’s commitment to disciplined underwriting and profitable growth while preserving Probitas’s unique culture and empowering its management team.

The acquisition is also set to diversify and expand Aviva’s Global Corporate & Specialty (GCS) footprint.

GCS is a key pillar of Aviva’s UK General Insurance (GI) business and is a strategic growth segment for the Aviva Group. Additionally, it supports the Group’s ambition to accelerate growth in its capital-light business units.

Jason Storah, Chief Executive Officer of Aviva UK & Ireland General Insurance, stated, “This is a fantastic opportunity for both Aviva and Probitas. The Probitas track record, technical expertise and high-quality team will be an excellent addition to Aviva. They will continue to run the business post-acquisition and the Probitas brand will remain. We want to preserve their unique, agile culture and support the team to focus on delivering profitable growth that will benefit from leveraging Aviva’s own scale and capabilities.”

Ash Bathia, Chief Executive Officer of Probitas, added, “As Probitas embarks on the next stage of its evolution, it was important to find a partner with the financial strength and commitment to enable Probitas to optimise its potential and ambition to significantly scale up and diversify the business and take advantage of a unique opportunity to build one of the most successful and profitable franchises in the Lloyd’s market. I am convinced that Aviva is an ideal partner and I am truly excited about being part of the Aviva Group and the opportunities ahead for our business and staff.”

Copyright © 2024 InsurTech Analyst

Enjoying the stories?

Subscribe to our weekly InsurTech newsletter and get the latest industry news & research


The following investor(s) were tagged in this article.