Belgium’s Ageas has agreed to buy UK insurer Esure from private equity firm Bain Capital for around £1.3 billion (€1.5bn).
Insurer Ageas said the deal would allow it to save at least £100 million (€115.8mn) per year before tax, according to a statement released on Monday.
The firm added that the deal will expand its reach, helping to grow its market revenue to £3.3bn (€3.8bn) by 2028.
The transaction is predicted to close in the second half of this year, subject to regulatory approval.
“This transaction will allow us to offer competitive value propositions to a wider customer profile via a multi-channel distribution model, positioning Ageas UK as one of the top three personal lines insurers,” CEO of Ageas Group, Hans De Cuyper, said on Monday.
CEO of Esure Group, David McMillan, said in the same statement: “Combining Ageas’s scale, financial strength and excellent broker relationships with esure’s strong retail brands, market-leading data capabilities and strength on PCWs, alongside a shared technology platform, will enhance our combined ability to invest in our customer proposition and open up new opportunities for growth.”
Esure, which also operates under the brand names Sheilas’ Wheels and First Alternative, was founded in 2000 and has been owned by Bain Capital since 2018. The group paid £1.2bn (€1.4bn) to end public ownership of the firm in 2018.
The deal also comes after Ageas attempted to expand its UK footprint by bidding for Direct Line. The British car insurer rejected two takeover bids from Ageas, the second of which valued the firm at £3.2bn (€3.7bn), branding the offer as “unattractive” for shareholders.
Direct Line is now being acquired by the UK’s largest insurer Aviva for £3.7bn (€4.3bn), a takeover Direct Line approved after rejecting the firm’s first offer. The acquisition means the combined group dominates more than 20% of the motor insurance market and 15% of the home sector.
Esure said it had seen “excellent progress” in its financial report for 2024, making a turnover of £1.1bn (€1.3bn), compared to £973mn in 2023.
The company made a trading profit of around £126.8mn (€146.7mn) last year, up from a loss of £16.7mn in 2023.
The deal between Esure and Ageas comes after the UK government launched an investigation into the high cost of car insurance last year, although prices have been falling in recent months.
