Aviva has reached an agreement to acquire Direct Line Insurance Group in a £3.7 billion (US$4.63 billion) cash-and-stock deal.
The company says the move will bring together a number of the UK’s brands in a more efficient business, which is well positioned to generate strong returns for all shareholders.
In 2020, Aviva outlined strategic priorities to simplify its operations and focus on insurance, wealth, and retirement as core business areas.
Since then, the company has concentrated its portfolio on key markets in the UK, Ireland, and Canada.
As part of this approach, Aviva has completed eight international disposals and expanded its core operations through targeted acquisitions.
Dame Amanda Blanc, group CEO of Aviva, comments: “Aviva and Direct Line share a deep commitment to excellence in looking after customers, and this will remain a top priority following the acquisition.
“The financial strength and scale of the combined group means customers will benefit from competitive pricing, an enhanced claims experience and even better service.”
Adam Winslow, CEO of Direct Line, adds: “In a highly competitive UK general insurance marketplace, the combined entity will be very well placed to deliver for its customers.
“I am proud of what Direct Line has achieved to date, and this offer will enable the business to continue to succeed as part of a combined group with Aviva.”
