Aviva completes acquisition of Probitas, returning to Lloyd’s after more than 20 years

British insurer Aviva announced that it has completed the acquisition of Probitas Holdings (Bermuda) Ltd., marking the company’s return to the Lloyd’s market after a hiatus of more than 20 years.

The Probitas deal, first announced in March, was completed for £242m. The acquisition of Lloyd’s Probitas includes its corporate member, managing agent, international distribution entities and leasing rights to Syndicate 1492.

Aviva said the acquisition represents a key milestone for its Global Corporate & Specialty (GCS) business as it re-enters Lloyd’s. “The Probitas business, combined with Aviva’s existing underwriting capabilities, brokerage relationships and capital base, will strengthen our service offering and proposition to meet a wider range of shared client needs,” the company said in a statement.

“It is also a significant growth opportunity as we now have greater access to international licensing and wider distribution networks,” Aviva added.

Jason Storah, CEO of Aviva UK & Ireland, has welcomed Ash Bathia, CEO of Probitas, to his leadership team. “Ash brings a wealth of market knowledge which, when combined with our already strong GCS leadership team led by Matt Washington, will accelerate the growth of this business.”

“This acquisition is the next step in our strategy to invest in Aviva’s future profitable growth. Aviva’s presence at Lloyd’s opens up new opportunities to accelerate growth in our low-capital general insurance business,” Amanda Blanc, Aviva’s group chief executive, said in a statement after the deal was announced in March.

Aviva (formerly CGNU) once operated a Lloyd’s syndicate but withdrew from Lloyd’s and the London market 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 renamed Aviva in July 2002.

(Aviva was formed following the merger of Norwich Union and CGU).

Topics
Mergers & Acquisitions Surplus Surplus Lloyd’s