Aviva Completes £3.7 Billion Takeover of Direct Line, Adam Winslow to Step Down.

Direct Line boss Adam Winslow is set to step down within days as Aviva completes its £3.7 billion takeover. Winslow has run the insurer for over a year, and his departure comes after Aviva boss Amanda Blanc reportedly had "no love lost" with him. Winslow will leave alongside chief financial officer Jane Poole, who will be replaced by Aviva's Stephen Pond. The tie-up will create a significant force in the motor insurance sector, covering over 20% of the market.

Direct Line Group (DLG) has announced that Adam Winslow, its chief executive, will step down following Aviva's acquisition of the insurer. Winslow, who took up the role in March 2024, will leave alongside chief financial officer Jane Poole and the current non-executive directors. The move comes as part of a scheme of arrangement that requires approval at a sanction hearing on July 1, 2025 [1].

Aviva's Jason Storah will become the new chief executive of DLG, while Aviva's Stephen Pond will replace Poole as chief financial officer. The merger, expected to close in July, is valued at £3.7 billion and aims to create a significant force in the UK motor insurance market, covering over 20% of the sector [2].

The acquisition has drawn regulatory scrutiny, with the UK Competition and Markets Authority (CMA) conducting an investigation into the merger. Aviva remains confident of securing unconditional clearance from the CMA by the July 10 deadline, following constructive discussions [3].

The merger will also see significant job cuts, with around 2,300 positions at risk as part of a cost-cutting initiative tied to the deal. Shareholders of Direct Line will receive 129.7 pence in cash along with 0.2867 Aviva shares per Direct Line share, with Aviva shareholders expected to hold approximately 87.5% of the new entity [2].

References:
[1] https://www.insurancetimes.co.uk/news/winslow-and-dlg-leadership-team-to-step-down-upon-completion-of-avivas-dlg-acquisiton/1455581.article
[2] https://www.marketscreener.com/quote/stock/AVIVA-PLC-4000581/news/Direct-Line-Insurance-notes-executive-reshuffle-amid-Aviva-takeover-50308914/
[3] https://www.pymnts.com/cpi-posts/avivas-3-7-billion-takeover-of-direct-line-set-to-complete-in-july-amid-regulatory-scrutiny/