Aviva rejects €6bn takeover bid

Dublin: Aviva Plc, Britain’s second-biggest insurer, said it rejected a £5 billion (€6.09bn) bid for its general insurance businesses in Britain, Canada and Ireland, because the deal wasn’t in shareholders’ interests.

Goodbody Stockbrokers said that, within Ireland, Aviva’s market share has been falling in recent years and was c19% in 2008 (the latest available figures), with RSA holding a 10% share for the same period.

“If the takeover goes ahead the company would likely drive synergies by taking out costs and, as quite often is the case for general insurance companies, gross written premiums may slip away to competitors providing an opportunity for others within the sector to pick up market share,” Goodbody said.

Aviva’s management was unanimous in rejecting the offer from RSA Insurance Group after considering the proposal with its advisers, the insurer said in a statement.