Aviva among insurers exploring bids for RSA’s UK PL business

Aviva is reportedly lining up a bid for RSA Insurance’s UK personal lines business.

Last month (7 September 2023), RSA owner Intact Financial Corporation said it was exploring strategic options with respect to the insurer’s consumer operations – including a potential sale.

A report by Reuters last week (6 October 2023) said that Aviva was among a small handful of insurers exploring bids.

And potential bidders have been asked to submit offers next month in an auction, anonymous sources told the publication.

Aviva has been approached for comment by Insurance Times.

Why sell?

Intact said it was exploring strategic options for RSA’s UK personal lines business to “accelerate its outperformance ambition”.

It came after the insurer announced its exit from the UK personal lines motor market back on 28 March 2023, citing the competitive nature of the business line.

Intact chief executive Charles Brindamour said that RSA leaving the motor market was a “further step in delivering against our strategic roadmap”.

As part of this, the two firms agreed a deal with Direct Line Group (DLG) to acquire the business’ brokered commercial lines operations.

In an announcement in September, RSA said the transaction would see it become the UK’s third largest commercial lines insurer with an estimated 7% of total market share.

Prior to this deal being agreed, RSA said it was the sixth largest commercial lines insurer in the UK market.