Aviva completes 3.7 billion pounds Direct Line takeover

By Rebecca Delaney

July 2 - (The Insurer) - London-listed Aviva disclosed in a London Stock Exchange filing on Wednesday that it has completed its 3.7 billion pound ($5.09 billion) takeover of rival Direct Line Group.

The deal completed following delivery of the court order to the Registrar of Companies on Tuesday.

The Insurer reported on Tuesday that the deal was set to complete later in the day after the scheme of arrangement that will implement the acquisition was sanctioned in court.

Earlier on Tuesday, the UK's Competition and Markets Authority announced it had given the green light to the deal.

The transaction sees Aviva become Britain's largest home and motor insurer in the UK personal lines insurance sector.

Jason Storah, UK&I general insurance (GI) CEO at Aviva, said the completed deal marked a "significant milestone" and the next step in Aviva's strategy.

"By combining the strengths of both organisations, we’ll be able to offer more to our customers and create value for our shareholders. It’s a step that makes sense for the long term, commercially, strategically, and culturally," said Storah.

"Together we’ll build a leading business in UK personal lines, bringing the best of Aviva’s insurance, wealth and retirement expertise to millions more customers."

Direct Line confirmed in a Stock Exchange announcement last week that CEO Adam Winslow and chief financial officer Jane Poole will both step down from their roles following completion of the acquisition.

Aviva announced on Wednesday a host of interim appointments to lead the Direct Line business.

This includes Tom Latter as finance director, Matt Ward as chief risk officer and Howard Grand as general counsel.

In addition, Jon Marsh has been named interim GI integration and transformation director, with Michael Korner as motor managing director and David Hughes as chief information officer.