Aviva to buy Direct Line in £3.7bn deal, putting 2,300 jobs at risk

Direct Line rejected an initial £3.3bn offer from Aviva, but agreed to a deal then valued at £3.6bn a week later. Photograph: Timon Schneider/Alamy

Aviva has agreed to buy the rival insurer Direct Line for £3.7bn, with up to 2,300 job cuts planned as the companies aim for at least £125m in cost savings.

Aviva, a FTSE 100 member and the UK’s largest insurance firm, said on Monday it would offer the equivalent of £2.75 in cash and stock for each Direct Line share.