Aviva has announced its re-entry into the Lloyd’s market after more than two decades with the acquisition of Probitas in a deal valued at £242m ($306.67m).
This move is aimed at broadening the market reach for Aviva’s global corporate and specialty division and aligns with the company’s growth ambitions in capital-light business segments.
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The acquisition includes Probitas’ Lloyd’s platform, which comprises its corporate member, managing agent and international distribution unit, and tenancy rights to Syndicate 1492.
Syndicate 1492 registered gross written premiums of £288m in 2023 and a 21% compound annual growth rate since 2019.
Aviva said the Lloyd’s market will allow it to leverage its underwriting expertise, broker relationships and capital resources.
The Lloyd’s platform will provide access to substantial premium volumes, international licences and extensive distribution networks, the British insurer noted.
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By GlobalDataFurthermore, Probitas’ specialisation in niche insurance lines is expected to enable Aviva to integrate into the Lloyd’s market in a manner that complements its strategy for products, geographical presence and risk profile.
Aviva’s history with the Lloyd’s market dates back to 2000, when it was known as Norwich Union, which exited the market following a merger with CGU.
Upon completion of the acquisition, the Probitas brand will be retained, with the existing management team at Probitas continuing to lead the company.
Aviva group CEO Amanda Blanc said: “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.”
Probitas CEO Ash Bathia 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.”
The deal awaits regulatory approvals, with completion anticipated in mid-2024.
In a separate recent development, Aviva partnered with broking company Howden to provide a tailored insurance solution for the UK’s solar energy subscription service.
