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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

AM Best Places Credit Ratings of Aviva Insurance Limited Under Review With Developing Implications

AM Best has placed under review with developing implications the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Rating of “aa-” (Superior) of Aviva Insurance Limited (AIL) (United Kingdom). AIL is a wholly owned subsidiary of Aviva plc (Aviva) (United Kingdom), the non-operating holding company of the Aviva group.

This Credit Rating (rating) action follows the announcement on Dec. 23, 2024, that Aviva Plc has made a binding offer to acquire Direct Line Insurance Group plc (DLG). Under the terms of the binding offer, Aviva will acquire the entire share capital of DLG for a total consideration of GBP 3.7 billion, to be delivered through a combination of cash and a partial share swap. Post acquisition, DLG’s shareholders would own approximately 12.5% of Aviva’s share capital.

The transaction is subject to approval from DLG’s shareholders, and subsequently, the applicable regulatory and competition authorities. DLG’s shareholders are expected to reach a decision in March 2025.

The under review with developing implications status reflects AM Best’s uncertainty over Aviva’s post-acquisition risk-adjusted capitalisation and liquidity. The acquisition is expected to add insurance services revenue (ISR) of more than GBP 3 billion to the Aviva group, which itself reported ISR of GBP 18 billion in 2023, further strengthening its market-leading position in the United Kingdom’s general insurance market.

The ratings will remain under review until DLG’s shareholders have announced whether they will accept or reject the binding offer. Subsequent to this, and should DLG’s shareholders accept the offer, the ratings will remain under review until the group’s post-acquisition credit fundamentals are more clear.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit

Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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