Aviva returns to Lloyd’s following Probitas acquisition

Written by Dan McGrath

04/03/2024

Aviva has agreed to acquire global property & casualty insurance firm, Probitas, for £242m, taking it back into the Lloyd’s insurance market for the first time in over 20 years.

The transaction includes the acquisition of the firm’s fully-integrated Lloyd’s platform, encompassing its corporate member, managing agent, international distribution entities and tenancy rights to Syndicate 1492.

Aviva said that the deal "significantly expands" its market opportunities for its global corporate and speciality (GCS) business, with the Lloyd’s market representing a "major source of untapped growth" for the firm.

It added that the acquisition also represents an opportunity to "enter the Lloyd’s market via a business that is well-aligned with Aviva’s strategy in terms of product, geography and risk profile".

Group chief executive officer (CEO) at Aviva, 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."

Syndicate 1492 reported gross written premium (GWP) of £288m in 2023 and has delivered a 21% compound annual growth rate (CAGR) since 2019.

During this period, the business has consistently been a top performer within its Lloyd's peer group, achieving an average combined ratio of 82%3. Strong growth is expected to continue during 2024, driven by favourable pricing trends, new product lines and expanded local distribution in key markets.

Following the acquisition, Probitas’s management team will continue to run the business and the brand will remain in use.

CEO at Aviva UK and Ireland general insurance, Jason Storah, added: "This is a fantastic opportunity for both Aviva and Probitas. The Probitas track record, technical expertise and high-quality team will be an excellent addition to Aviva. They will continue to run the business post-acquisition and the Probitas brand will remain. We want to preserve their unique, agile culture and support the team to focus on delivering profitable growth that will benefit from leveraging Aviva's own scale and capabilities."

CEO at Probitas, Ash Bathia, concluded: "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. I am convinced that Aviva is an ideal partner and I am truly excited about being part of the Aviva Group and the opportunities ahead for our business and staff."

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