Aviva PLC (LSE:AV.) has expanded its operations in Canada with the acquisition of vehicle replacement insurance business Optiom.
The FTSE 100-listed insurer has paid around £100 million to buy the business from Novacap, in a deal which is expected to close in the first quarter of 2024.
The company said the purchase expands Aviva's capital-light businesses, which make up over half of its portfolio, and grows in a profitable segment of the Canadian insurance market.
Tracy Garrad, chief executive officer 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."
Aviva stressed the deal is consistent with its capital management framework and it continues to anticipate further regular and sustainable returns of surplus capital.