Probitas Holdings (Bermuda) Ltd is to be acquired by Aviva Plc, the British insurance powerhouse, in a deal having a minimum fixed consideration of £242 million (approximately $307 million).

Probitas Holdings is the ultimate holding company of the Probitas Group.

The transaction includes Probitas Managing Agency, which is the managing agent of Lloyd’s Syndicate 1492, the corporate member Probitas Corporate Capital Ltd and all other subsidiaries.

From a true start-up in October 2015, Probitas said it had grown into one of the best performing Lloyd’s businesses, with a 2021, 2022 and 2023 GAAP net combined operating ratio of 78.7 per cent, 78.6 per cent and 79.8 per cent, respectively.

It added that the 2024 year of account gross written premium of Syndicate 1492 is projected to be around £400 million (approximately $508 million), written across underwriting platforms in London, Manchester, Australia, Europe, Mexico and Canada.

Ash Bathia, the chief executive of Probitas, said: “I’m delighted to announce this deal today because Aviva is the ideal partner for Probitas going forward and I’m truly excited about the combined opportunities ahead for our business and staff.

“The success of Probitas is built on solid foundations; a fantastic team of people; rigorous underwriting discipline; market leading actuarial and analytics capability; and a broad distribution network, all underpinned by a strong set of values and corporate culture.

“As Probitas embarks on the next stage of its evolution it was important to find a partner with the financial strength and ambition to allow us to increase our share of the vast global specialty business by using our extensive Lloyd’s licences combined with Aviva’s brand strength, scale and distribution reach.”

Jason Storah, chief executive, Aviva UK & Ireland General Insurance, said: “This is a fantastic opportunity for both Aviva and Probitas.

“The Probitas track record, technical expertise and high-quality team will be an excellent addition to Aviva.

“They will continue to run the business post-acquisition and the Probitas brand will remain.

“We want to preserve their unique, agile culture and support the team to focus on delivering profitable growth that will benefit from leveraging Aviva’s own scale and capabilities.”

The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in mid-2024, Probitas said.