Aviva to buy Canada's Optiom for around £100m

Aviva said on Monday that it has agreed to buy Optiom from Novacap and other minority shareholders for around £100m.

Optiom, which operates as a managing general agent (MGA), is a provider of vehicle replacement insurance in Canada and offers flexible payment options to customers.

Aviva said the deal expands its capital-light businesses, which make up over half of the company’s portfolio, and grows Aviva Canada's presence in a profitable segment of the Canadian insurance market.

Tracy Garrad, chief executive 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 deal is expected to close in the first quarter of 2024.