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(Bloomberg) — Direct Line Insurance Group Plc rejected a £3.3 billion ($4.2 billion) takeover bid from Aviva Plc, rebuffing the second suitor this year. 

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London-listed Aviva submitted a non-binding proposal valuing Direct Line at about 250 pence per share, it said in a statement Wednesday that confirmed an earlier Bloomberg News report. The price represents a 58% premium to Direct Line’s Wednesday close.

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“Aviva believes that an acquisition of Direct Line would deliver attractive returns for both Aviva and Direct Line shareholders, including unlocking value that is inaccessible to Direct Line standalone,” it said in the statement. “Aviva believes that the acquisition would deliver material cost and capital synergies, incremental to Direct Line’s existing cost savings programme.”

Direct Line’s board rejected the proposal on Nov. 26, saying it substantially undervalues the company, and has declined to engage further with Aviva, according to the statement. Aviva is offering 112.5 pence in cash plus 0.282 new Aviva shares for each Direct Line share. 

Direct Line said in its own statement on Wednesday that its board considered Aviva’s offer to be “highly opportunistic in nature.” It said that its board stands behind a newly-established leadership team and a strategy that it expects to “deliver attractive growth in profitability, capital generation and shareholder returns.”

Bloomberg News reported earlier Wednesday that Aviva has been speaking with advisers about a potential takeover of Direct Line. Shares of Direct Line have fallen 13% this year, giving the company a market capitalization of about £2.1 billion.

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Under UK takeover rules, Aviva has until 5 p.m. local time on Dec. 25 to announce a firm intention to make an offer or walk away.

Aviva has started hunting for acquisitions again after Chief Executive Officer Amanda Blanc pursued a series of divestments that slimmed down the insurer and left it more focused on the UK. In March, Aviva said it was entering the Lloyd’s insurance market through a £242 million purchase of Probitas. Aviva shares have gained 13% this year, valuing it at £13.1 billion.

Last year, it agreed to buy Corebridge Financial Inc.’s UK protection business AIG Life Ltd. for £460 million. Aviva is among potential suitors that have been studying Esure Group Plc, the British home and motor insurance firm backed by Bain Capital, Bloomberg News reported last month. 

Direct Line, known for its motor insurance offerings in the UK, has been pursuing an independent path after rebuffing a proposal from Belgian rival Ageas in March that valued it at around £3.2 billion. It said this month it’s going to cut about 550 jobs as part of a turnaround plan aimed at saving £50 million next year.

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Bromley, England-based Direct Line sells insurance under its eponymous brand as well as through units including Churchill, Green Flag, Privilege and Darwin Motor Insurance. In addition to car insurance, it also offers home, travel, pet and life insurance as well as offering cover for businesses. 

Citigroup Inc. and Goldman Sachs Group Inc. are advising Aviva on the deal, according to Wednesday’s statement. Direct Line is being advised by Morgan Stanley and Robey Warshaw, while its corporate brokers are Morgan Stanley and Royal Bank of Canada.

—With assistance from Ruth David, Pamela Barbaglia and Aaron Kirchfeld.

(Updates with Direct Line response in fifth paragraph, advisers in final paragraph.)

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