Aviva x Direct Line: Shareholders Give Green Light to Landmark Merger.

It’s official—Aviva’s recommended offer for Direct Line Insurance Group has cleared a key milestone, with shareholders at both companies overwhelmingly backing the proposed acquisition. The deal, first announced in December 2024, is set to reshape the landscape of personal lines insurance in the UK.

At meetings held earlier today, a staggering 99.84% of Direct Line shareholders voted in favour of the scheme of arrangement that will see Aviva acquire the insurer through a mix of cash and shares. The supporting vote wasn’t just strong in numbers—it also signals market confidence in the deal’s potential to deliver value and long-term synergy.

What’s Next?

While today’s vote ticks off major conditions for the merger, the deal isn’t fully over the line just yet. The acquisition remains subject to:

• Court sanctioning of the scheme;

• Final delivery of the court order to Companies House;

• Regulatory approvals and conditions outlined in the scheme documentation.

Provided all goes smoothly, the timeline for implementation remains on track, with Aviva preparing to formally absorb Direct Line in the coming months. Once effective, Direct Line shares will be delisted from the London Stock Exchange.

A Turning Point for the UK Market?

This deal brings together two of the UK’s biggest household names in insurance—raising interesting questions about market competition, operational integration, and future pricing strategies. It also comes at a time when the personal lines sector is under pressure from claims inflation, regulatory scrutiny, and shifting consumer expectations.

For Aviva, it’s a bold play to deepen its grip on motor, home, and SME markets. For Direct Line, it’s a new chapter—potentially bringing stronger capital backing and operational scale.

We’ll be keeping a close eye on the implications for brokers, policyholders, and the wider industry in the weeks ahead.