UK insurer Aviva announced it has completed the acquisition of Probitas Holdings (Bermuda) Ltd., which marks the company’s return to the Lloyd’s market after a hiatus of more than 20 years.
The deal with Probitas, first announced in March, was completed for a consideration of £242 million. The acquisition of Probitas’ Lloyd’s platform encompasses its corporate member, managing agent, international distribution entities and tenancy rights to Syndicate 1492.
Aviva said the acquisition marks a key milestone for its Global Corporate & Specialty (GCS) business as it re-enters Lloyd’s. “The Probitas business, when combined with Aviva’s existing underwriting capabilities, broker relationships and capital base, will enhance our service offering and proposition to meet more of our shared customers’ needs,” the company said in a statement.
“It also represents a significant growth opportunity now we have increased access to international licences and broader distribution networks,” Aviva added.
Jason Storah, chief executive officer of Aviva UK & Ireland, welcomed Ash Bathia, CEO of Probitas to his leadership team. “Ash brings with him a wealth of market knowledge, which when combined with our already strong GCS leadership team under Matt Washington, will accelerate the growth of this area of the business.”
“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,” said Amanda Blanc, Group Chief Executive Officer of Aviva, in a statement issued when the deal was announced in March.
Aviva (previously trading as CGNU) once operated a Lloyd’s syndicate but exited Lloyd’s and London market business in November 2000 when it sold Marlborough Underwriting Agency to Warren Buffett’s Berkshire Hathaway. In February of that year, CGU merged with Norwich Union to become CGNU, which was rebranded as Aviva in July 2002.
(Aviva was formed after the merger of Norwich Union and CGU).
This article was originally published by Insurance Journal. L.S. Howard is the international editor of Insurance Journal.