Aviva Canada buys RBC General InsuranceBy Hubert Roy | January 21 2016 03:46PM
Aviva Canada today announced the acquisition of RBC General Insurance Company. Aviva has also signed a 15-year agreement to enable Aviva to offer its property and casualty insurance products to RBC Insurance clients.
As part of this agreement, Aviva Canada will provide policy administration and claims services to RBC Insurance clients who will have access to Aviva’s full range of products. These products will be marketed and sold under the RBC Insurance brand.
Upon completion of the transaction, 575 RBC Insurance employees currently involved in underwriting, claims and other key functions will become part of Aviva Canada's operations.
The acquisition of RBC Insurance’s home and auto business further strengthens Aviva's market position in Canada, and will increase Aviva Canada's gross written premiums by approximately CAD$800m. It will also solidify its second place position in the Canadian general insurance market behind Intact Corporation and ahead of Desjardins.
Under the agreement, Aviva will pay RBC Insurance CAD$582 million upon closing of the deal.