Aviva to acquire Canadian vehicle replacement insurance business, Optiom

November 27, 2023 (LONDON, UK) 

Aviva to acquire Optiom for consideration of c.£100m¹

Supports Aviva’s capital-light growth in attractive Canadian market

Strengthens Aviva Canada’s specialty lines business and distribution capabilities 

Aviva plc (“Aviva”) today announces the acquisition of Optiom O2 Holdings Inc (“Optiom”) from Novacap and other minority shareholders for consideration of c. £100m¹ (c.CAD$170m). Optiom, which operates as a managing general agent (“MGA”), is a leading provider of vehicle replacement insurance in Canada and offers flexible payment options to customers.

The acquisition expands Aviva’s capital-light businesses, which make up over half of Aviva’s portfolio, and grows Aviva Canada’s presence in a profitable segment of the Canadian insurance market. As an existing underwriting capacity provider for Optiom, the transaction provides an opportunity for Aviva Canada to increase its access to an attractive line of business, while securing a stable, growing stream of distribution income. Optiom’s strong distribution relationships will allow Aviva Canada to reach additional customers, who will receive best in class service alongside existing Aviva Canada customers. 

Tracy Garrad, Chief Executive Officer of Aviva Canada, said:

“The acquisition strengthens our offering and distribution capabilities in a highly attractive segment of the Canadian insurance market.  We know Optiom well through our existing relationship and are excited about what we can do together to better serve our brokers and customers.”

The acquisition is consistent with our capital management framework, which remains unchanged. We continue to anticipate further regular and sustainable returns of surplus capital. 

The transaction is subject to customary closing conditions including regulatory approvals and is expected to close in Q1 2024.

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About Optiom

Founded in 2008, Optiom is headquartered in Calgary with over 100 employees. Optiom originated in British Columbia and has now become Canada’s largest provider of vehicle replacement insurance licensed across all provinces and territories in Canada, excluding Quebec. Optiom distributes its products through a network of over 330 dealers and over 900 broker offices and has sold over 600,000 policies since inception. Optiom offers premium financing solutions through an associated company within the Optiom group.

¹ Based on GBP/CAD spot rate of 1.72 as at 24 November 2023.