Aviva to enter Lloyd’s market via acquisition of Probitas

Aviva announced the acquisition of Probitas for £242 million. The transaction includes the acquisition of Probitas’s fully-integrated Lloyd’s platform, encompassing its Corporate Member, Managing Agent, international distribution entities and tenancy rights to Syndicate 1492.

Probitas provides a range of coverages including professional liability and property catastrophe. The deal will boost Aviva’s global corporate and specialty business and give it a route back into the Lloyd’s market. “The Lloyd’s market represents a major source of untapped growth for Aviva, offering access to significant in-appetite premium volumes, international licenses and broader distribution networks,” the insurer said.

Syndicate 1492 reported gross written premium of £288 million in 2023 and has delivered a 21% compound annual growth rate since 2019. During this period, the business has been a top performer within its Lloyd’s peer group, achieving an average combined ratio of 82%. Strong growth is expected to continue during 2024, driven by favorable pricing trends, new product lines and expanded local distribution in key markets.

“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.” – Amanda Blanc, Group Chief Executive Officer of Aviva.

“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.” – Jason Storah, Chief Executive Officer of Aviva UK & Ireland General Insurance.

“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.” – Ash Bathia, Chief Executive Officer of Probitas.