Aviva eyes ‘attractive’ UK financial market with £385m acquisition deal

UK-based global insurer  Aviva has struck a £385 million all-cash deal for an independent financial advice firm to strategically expand its presence in the “attractive” UK wealth market.

Aviva is set to acquire Succession Wealth in a move it hopes will significantly strengthen its wealth offering and accelerate its ability to offer financial advice to its approximately 4 million workplace pension customers, where Aviva is the UK’s largest provider with £96 billion of AuM, as well as approximately 2 million individual pensions & savings customers with £139 billion of AuM, focusing on customers who do not currently have an adviser.

Additionally, it will help the insurer retain more of the c.£6 billion of pension and heritage assets that leave to be invested with competitors each year.

Aviva said the transaction is being funded by cash, and is expected to deliver a double digit return on invested capital in the medium term, including all integration and restructuring costs.

"The acquisition of Succession Wealth boosts Aviva's presence in the fast-growing UK wealth market; supports our strategy to grow sustainably; and expands Aviva's ability to offer high quality financial advice to millions of our customers," said Amanda Blanc (pictured), the group chief executive officer of Aviva.

The transaction is subject to FCA approval and is expected to complete in the second half of 2022.

Doug Brown, chief executive officer of Aviva UK and Ireland Life, said: "We are excited to partner with the management team at Succession Wealth. They have built a great business over the years, and I am confident that Aviva’s scale, resources, capabilities and shared vision will enable Succession Wealth to further expand its leading client and planner proposition in the UK’s attractive wealth market. This acquisition will broaden our advice offering and will help our existing customers currently without an adviser to better secure their financial future.”

Succession Wealth is led by CEO James Stevenson who will continue to run the business that will operate as a separately regulated, independent, financial advice firm.

Stevenson said: “We are delighted to become part of Aviva and to offer our independent financial planning capability to Aviva customers who don’t have an adviser. The demand for financial advice across the entire wealth spectrum has never been greater, and the opportunity to combine Succession Wealth’s holistic financial planning expertise, with the capabilities and customer reach of Aviva is hugely exciting. The Succession Wealth brand and our core independent advice proposition is fundamental in providing ongoing stability and reassurance to our existing clients and our people as we embark on this new journey as part of Aviva.”

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