Aviva to buy Canada’s Optiom for £100 million

Insurance giant Aviva said it will buy a Canadian vehicle insurer for about £100 million.

The purchase of Optiom O2 will let the British insurer reach more customers in Canada, one of its three key areas after years of refocusing the business.

Optiom provides vehicle replacement insurance in the North American nation. Aviva is already the company’s underwriter, the business said.

The deal is expected to be completed in the first three months of 2024.

“The acquisition strengthens our offering and distribution capabilities in a highly attractive segment of the Canadian insurance market,” said Aviva Canada chief executive Tracy Garrad.

“We know Optiom well through our existing relationship and are excited about what we can do together to better serve our brokers and customers.”

Aviva has been scaling back its business for years. Its plan under chief executive Amanda Blanc has been to focus on three key markets: the UK, Ireland and Canada.

In September, the business announced the approximately £800 million sale of its stake in a Singapore-based joint venture.

Just weeks later, Ms Blanc splashed out £460 million to buy AIG’s UK protection business for about £460 million.

The business has also been the rumour of takeover speculation. In early October, shares spiked amid reports buyers might be circling.