British insurer Aviva has announced its re-entry into the historic Lloyd’s insurance market with the acquisition of insurance platform Probitas for £242 million ($307 million). This move strengthens Aviva’s general insurance business, particularly amidst the trend of rising prices, and underscores the enduring appeal of Lloyd’s of London as a global insurance hub.
Aviva will acquire Probitas’ fully-integrated Lloyd’s platform and underwriting unit Syndicate 1492, which recorded gross written premiums of £288 million in 2023. Aviva CEO Amanda Blanc expressed optimism about the opportunities this move presents for accelerating growth in the company’s capital-light General Insurance segment.
Having exited the Lloyd’s market over two decades ago in 2000, Aviva’s return marks a significant strategic shift. Analysts at Jefferies anticipate positive impacts on Aviva’s non-life insurance margins as a result of the acquisition.
Blanc had previously expressed Aviva’s interest in re-entering the Lloyd’s of London commercial market in August last year. Aviva reassured that Probitas’ existing management team will continue to lead the business, and the brand will be retained.
“Aviva’s presence in the Lloyd’s market opens up new opportunities to accelerate growth in our capital-light General Insurance business,” Aviva CEO Amanda Blanc said.