Aviva boss Blanc eyeing up more takeover targets after DLG deal

Aviva chief executive Amanda Blanc has more acquisitions in her sights after securing a deal with Direct Line Group (DLG), according to a report.

The DLG board accepted a £3.6bn bid from Aviva, with the two firms having reached a preliminary agreement on the financial terms for a potential acquisition as a result.

Aviva has made the move as it looks to expand in the UK personal lines market.

A source told This is Money that Blanc is seeking more takeover targets and is continuing to eye up potential expansion areas across Aviva, such as its health and protection arm.

Reason for DLG bid 

After securing a preliminary agreement with DLG, Aviva said it ”believes in the strong strategic and financial logic for a combination of Direct Line into the Aviva group”.

It also explained that “the acquisition would allow DLG customers to benefit from Aviva’s breadth, scale and financial strength”.

The insurer added: “Aviva believes that an acquisition of DLG would be consistent with its strategy to accelerate growth in its UK businesses and further pivot the group towards capital-light business lines.

“The acquisition would expand Aviva’s presence in the attractive UK personal lines market, building on its existing strength and creating a more efficient platform from which to serve existing and new customers.”

According to British takeover rules, Aviva has until 25 December 2024 to make a firm offer or walk away.

The DLG board said it was minded to recommend to shareholders that they accept a formal offer.