Aviva Canada has completed the acquisition of RBC General Insurance for about $403m.
Under the deal, which was first announced in January this year, Aviva Canada acquired RBC’s certain home and auto insurance manufacturing capabilities, comprising of claims, underwriting and product development.
Both firms also signed 15-year strategic agreement, under which Aviva Canada will offer policy administration and claims services and RBC will access Aviva Canada’s full suite of property and casualty (P&C) products.
The acquisition is said to expand Aviva’s presence in Canada, in addition to increasing gross written premiums by around C$800m.
Around 550 RBC Insurance employees will join Aviva Canada to support the acquired business.
At the time of acquisition, 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."
Aviva Canada provides P&C products, including home, automobile, leisure/lifestyle and business insurance.
The firm has around 4,000 employees, 1,500 independent broker partners and 27 locations across Canada.
In December 2014, Aviva Canada’s parent firm UK-based Aviva agreed to buy Friends Life for around £5.6bn ($8.8bn).
Friends Life was founded as Resolution Limited by entrepreneur Clive Cowdery in 2008, and changed its name to Friends Life Group in May 2014.
Image: Aviva’s world headquarters in London. Photo: courtesy of Colin.