Aviva buys RBC's general insurance business for $400 million

Thu Jan 21, 2016 8:10am EST
 
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LONDON (Reuters) - British insurer Aviva (AV.L: Quote)'s Canadian division said on Thursday it was buying the general insurance division of Canadian bank RBC (RY.TO: Quote) for C$582 million ($402.57 million).

Around 575 RBC Insurance employees will become part of Aviva Canada's operations as a result of the acquisition of RBC General Insurance, Aviva Canada said in a statement.

Aviva Canada has also entered a 15-year agreement with RBC Insurance, enabling RBC Insurance customers to buy Aviva Canada's property and casualty (P&C) insurance products, Aviva said.

Aviva said it will make an estimated net after-tax gain of C$200 million on the deal, which it said would increase Aviva Canada's annual gross written premiums by around 20 percent.

(Reporting by Carolyn Cohn; editing by Simon Jessop)