By James Silver
Insurance giant Aviva will head back into Lloyd’s for the first time since 2000 after acquiring carrier Probitas for more than £200m.
The transaction sees Aviva take tenancy rights to Syndicate 1492, giving it a pathway back into the Lloyd’s market, and boosting the one Norwich-HQed business’ global corporate and specialty 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 Aviva CEO Amanda Blanc.
The £242m deal includes the acquisition of Probitas’s fully-integrated Lloyd’s platform, encompassing its Corporate Member, Managing Agent, international distribution entities and tenancy rights to Syndicate 1492.
The tie-up also marks something of a coup for Lloyd’s of London chief John Neal.
Probitas reported gross written premium of £288m and Aviva said this morning that strong demand was expected to continue through 2024.
It will keep the carrier’s management team in place, the firm said in a statement to markets this morning.
Aviva management has been dangling the prospect of a return to the Lloyd’s market over the past couple of years.
The firm exited in 2000, when the firm – then known as Norwich Union – merged with CGU.
The Probitas deal had been reported as dead by sources in the insurance industry last month, however this morning’s announcement suggests that was very much not the case.
Jason Storah, Chief Executive Officer of Aviva UK & Ireland General Insurance, said: “This is a fantastic opportunity for both Aviva and Probitas. The Probitas track record, technical expertise and high-quality team will be an excellent addition to Aviva
Ash Bathia, Chief Executive Officer of Probitas, said: “As Probitas embarks on the next stage of its evolution, it was important to find a partner with the financial strength and commitment to enable Probitas to optimise its potential and ambition to significantly scale up and diversify the business and take advantage of a unique opportunity to build one of the most successful and profitable franchises in the Lloyd’s market.”
