RBC selling home-auto insurance unit to Aviva for $582 million, 575 jobs moving
Royal Bank of Canada is selling RBC General Insurance and moving some of its employees to Aviva Canada.
The bank (TSX:RY) will receive about $582 million from the sale of the home and auto insurance business and RBC estimates it will realize a $200-million after-tax net gain from the deal, which will close sometime between July and September.
Aviva Canada will also provide a full suite of property and casualty insurance to RBC customers, including home and auto, under a 15-year strategic agreement with the bank. Policyholders won’t be affected at this time.
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About 575 RBC employees will move to Aviva and others supporting the sales process will remain with the bank.
Those that are moving to Aviva are responsible for claims, underwriting, product development, information technology and related functions.
“This partnership is a fantastic addition to Aviva Canada, diversifying our distribution alongside our highly-valued 1,500 independent brokers,” Aviva Canada chief executive Greg Somerville said in a joint statement.
