Aviva Canada announces the acquisition of RBC General Insurance Company and a long-term strategic agreement with RBC Insurance to provide a full suite of property and casualty (P&C) products to existing and future RBC Insurance customers
Toronto, ON (Jan. 21, 2016) – Aviva Canada Inc., one of the country’s leading providers of home, auto, leisure/lifestyle and business insurance, announces the acquisition of RBC General Insurance Company and a 15-year strategic agreement with RBC Insurance. Through this agreement, Aviva Canada will provide policy administration and claims services, and RBC Insurance customers will be able to access Aviva Canada’s full suite of property and casualty (P&C) products. RBC Insurance will continue to market and sell these products under the RBC Insurance brand.
As part of the agreement, approximately 575 RBC Insurance employees currently involved in underwriting, claims and other key functions will become part of Aviva Canada’s operations upon completion of the transaction.
The addition of the existing RBC Insurance home and auto business to Aviva further strengthens Aviva’s market position in Canada, and will increase Aviva Canada’s gross written premiums by approximately CAD $800m. In 2014, Aviva Canada’s GWP was CAD$3,959m.
Under the agreement, Aviva will pay RBC Insurance CAD$582 million upon closing, which is expected to occur in the third calendar quarter of 2016 subject to customary closing conditions, including receipt of required regulatory approvals.
“This is a landmark deal which underlines our confidence in a key market for Aviva, and one where we see future growth,” said Maurice Tulloch, Chairman, Global General Insurance, Aviva plc. “Partnering with RBC Insurance to provide their customers with a broad range of general insurance products, backed by the latest digital technology and world-class claims and underwriting, extends Aviva’s leadership in general insurance.”
“I’m excited to be partnering with a prestigious brand like RBC Insurance to meet the insurance needs of more Canadians,” said Greg Somerville, CEO of Aviva Canada. “We both share a passion for excellence in customer experience and the fundamentals of general insurance. This partnership is a fantastic addition to Aviva Canada, diversifying our distribution alongside our highly-valued 1,500 independent brokers. This is consistent with our strategy to provide consumers with choice about how they access insurance solutions. I am looking forward to welcoming the RBC Insurance employees joining Aviva.”
“We are pleased to be partnering with Aviva Canada, as we share a commitment to making sure clients are protected and receive outstanding care,” said Neil Skelding, President and CEO of RBC Insurance. “RBC Insurance is one of the fastest growing direct-to-consumer home and auto insurance providers in Canada and this partnership will allow us to maintain our deep client relationships, while offering a full suite of property and casualty insurance products.”
About Aviva Canada
Aviva Canada is one of the leading property and casualty insurance groups in Canada providing home, auto and business insurance to more than three million customers. The company is a wholly-owned subsidiary of UK-based Aviva plc and has more than 3,000 employees, 25 locations and approximately 1,500 independent broker partners. Aviva Canada is the second largest general insurance business in the Aviva Group. General insurance is a key growth area for Aviva and a core component of the Group’s customer composite strategy, providing customers with life insurance, general insurance, health insurance and asset management.
Aviva Canada invests in positive change through the Aviva Community Fund, Canada’s longest running online community funding competition. Since its inception in 2009, the Aviva Community Fund has awarded $6.5 million to 222 charity groups across Canada.
For more information visit AvivaCanada.com.
About RBC Insurance
RBC Insurance®, through its operating entities, provides a wide range of travel, life, health, home, auto, wealth and reinsurance products and solutions, as well as creditor and business insurance services to individual, business and group clients. RBC Insurance has more than four million clients globally. We are one of the largest Canadian bank-owned group of insurance companies, and among the fastest growing insurance organizations in the country. RBC Insurance employs more than 3,000 employees, and is the brand name for the insurance operating entities of Royal Bank of Canada.