Aviva completes Direct Line Group purchase

UPDATE 2 July: Aviva completes acquisition of Direct Line

Amanda Blanc, Group Chief Executive Officer, Aviva plc said: “The completion of the acquisition of Direct Line brings together some of the country’s best-known and admired insurance brands and brilliant people to better serve the needs of now 20 million UK customers. The transaction builds on the excellent progress we’ve made at Aviva over the last five years, accelerates our capital-light growth strategy, and puts us in a very good position to deliver strong returns for shareholders. That is why this deal made such sense for us and we are excited at the further opportunities this creates for Aviva’s growth."

Previously, ITIJ shared:

Under the terms of the buy out, Aviva has agreed to buy the rival insurer Direct Line for £3.7 billion.

Commenting on the Acquisition, Dame Amanda Blanc, Group Chief Executive Officer of Aviva, said: "This deal is excellent news for the customers and shareholders of Aviva and Direct Line. It builds on our track record of delivering four years of strong financial performance and, in line with our strategy, it accelerates our growth in capital light business.

Aviva and Direct Line share a deep commitment to excellence in looking after customers, and this will remain a top priority following the Acquisition. The financial strength and scale of the Combined Group means customers will benefit from competitive pricing, an enhanced claims experience and even better service.

The acquisition of Direct Line by Aviva will bring together a number of the UK's leading brands in a more efficient business, which is very well positioned to generate strong returns for all shareholders."

Commenting on the Acquisition, Danuta Gray, Chair of Direct Line, said: "The Board of Direct Line is pleased to recommend Aviva's offer for the company, which delivers significant value for Direct Line Shareholders. The offer represents a substantial premium and reflects the attractiveness of Direct Line, a high quality business with powerful insurance brands, excellent customer focus, and exceptional people. The Board of Direct Line has been very pleased with the progress made by its new management team, but Direct Line is in the early stages of an extensive turnaround, and it believes the offer allows Direct Line Shareholders to realise the value of their investment in the near term. Direct Line's customers and employees will be joining an established, successful business with a wide array of insurance products that is well-placed to deliver for all its stakeholders."