Belgium-based insurance coverage group Ageas has agreed to accumulate UK digital private strains insurer Esure from Bain Capital for roughly £1.3bn ($1.7bn).
Esure is understood for its digital private strains insurance coverage with a presence on worth comparability web sites within the UK.
The acquisition is according to Ageas’ priorities beneath its Elevate27 programme, which focuses on increasing its dealer and partnerships private strains enterprise within the UK.
The deal is about to merge Ageas UK with Esure, forming what it claims would be the third-largest UK private strains platform within the UK, providing a distribution combine that features direct, worth comparability web sites, brokers and partnerships.
Esure, with its absolutely digital distribution mannequin, operates three fashionable manufacturers: esure, Sheilas’ Wheels and First Various.
In 2024, the corporate held greater than 2.1 million insurance policies and a gross written premium (GWP) of £1bn.
In a press assertion, Ageas stated: “We anticipate economies of scale in our UK private strains portfolio and the accelerated implementation of the EIS IT platform, together with Esure’s complementary claims module, to drive operational efficiencies and price avoidance for Ageas UK.
“Continued concentrate on know-how, knowledge and AI is predicted to create additional aggressive benefits. As well as, capital advantages from enhanced diversification and the inclusion of Esure in Ageas’s partial inside mannequin are anticipated to emerge over time.”
The transaction is structured to take care of Ageas’ Solvency II goal ratio at 150%, because it was at year-end 2024.
Ageas expects its Solvency II ratio to lower by solely round 10% as a result of inclusion of roughly €1bn of personal funds devices within the financing combine.
Ageas Group CEO Hans De Cuyper stated: “This transaction will enable us to supply aggressive worth propositions to a wider buyer profile by way of a multi-channel distribution mannequin, positioning Ageas UK as one of many prime three private strains insurers.
“Buying Esure additionally helps our strategic ambitions of rebalancing our group profile in the direction of companies with excessive money conversion.”
Ageas UK CEO Ant Center stated: “Underneath Elevate27, we wish to proceed to develop our dealer and partnerships private strains enterprise within the UK, and Esure will assist us to quickly broaden our direct distribution, our buyer attain and our scale general.”
The deal, which is because of be accomplished within the second half of 2025, is topic to regulatory approvals.
Final yr, Ageas agreed to accumulate Saga’s insurance coverage underwriting enterprise and set up a 20-year partnership with the UK insurer.
