British insurer Aviva has acquired Irish pensions, life and investment provider Friends First Life Assurance Company for €130m, making it the largest composite insurers in Ireland.
Friends First is currently owned by Dutch insurer Achmea Holding has been operating in Ireland for over 180 years with a focus on life protection, pension and investment products for individuals and companies and has a 6% market share.
As a result of this acquisition, Aviva’s market share in life insurance increased to 15%, alongside its existing leading 15% market share in general insurance.
The acquisition needs to be approved by regulators and is expected to complete in the first quarter of 2018. The amount Aviva has agreed to pay for the company represents a multiple of 0.8 times Friends First’s adjusted net asset value.
Aviva International Insurance chief executive Maurice Tulloch said: “Friends First is a natural fit for Aviva Ireland. The acquisition will enhance Aviva Ireland’s product offering and accelerate our international growth agenda. It makes sense financially, strategically and for our customers.”
“This acquisition underlines Aviva’s disciplined approach to deploying capital into bolt-on acquisitions that meet our strict financial criteria and strengthen our businesses.”