Aviva Canada has agreed to acquire RBC Insurance’s home and motor insurance business RBC General Insurance for around C$582m ($403m).
RBC Insurance has also signed a 15-year strategic agreement with Aviva Canada to distribute its property and casualty (P&C) insurance products in the country.
Under the deal, around 575 RBC’s employees will be included in the Canadian operations of Aviva.
RBC Insurance president and CEO Neil Skelding said: "Insurance is one of the fastest growing direct-to-consumer home and auto insurance providers in Canada and this partnership will allow us to maintain our deep client relationships, while offering a full suite of property and casualty insurance products."
The acquisition will expand Aviva Canada’s home and auto business operations, and is expected to increase its gross written premiums by around C$800m ($554m).
Subject to customary closing conditions, the deal is expected to complete in the third quarter of this year.
Aviva Group CEO Mark Wilson said: "This new partnership extends Aviva’s presence in general insurance, brings additional diversification benefits to the group and presents excellent opportunities for revenue and earnings growth in the attractive Canadian market."
With around 1,500 independent broker partners, Aviva Canada provides home, auto and business insurance services to around three million customers.
Image: RBC General Insurance provides home and motor insurance products. Photo: courtesy of Stuart Miles / FreeDigitalPhotos.net.