Aviva Acquires Direct Line in £3.7 Billion Deal to Dominate UK Insurance Market

The merger will create the UK's largest motor and home insurer, with plans for significant cost savings and potential job cuts.

Aviva has agreed to acquire rival insurer Direct Line for £3.7 billion in a cash-and-stock deal, creating a major force in the UK insurance sector.
The combined entity will become the largest provider of motor and home insurance in the UK, covering over 20% of the market.
The merger is expected to generate £125 million in annual cost savings but could result in up to 2,300 job cuts over the next three years.
Aviva shareholders will own 87.5% of the new company, while Direct Line shareholders will hold 12.5%, with the latter receiving cash, shares, and dividend payments as part of the deal.
Shareholder votes on the merger are scheduled for March 2025, with the integration expected to be completed by mid-2025.