Belgian insurance firm Ageas will acquire UK-based esure for £1.3 billion ($1.7 billion). The move aims to strengthen Ageas’ position in the British market and expand its digital and customer reach.
Acquisition to Create UK’s Third Largest Personal Lines Platform
Ageas announced the deal on Monday, stating that the acquisition will help form the third-largest personal lines insurance platform in the UK. The purchase from Bain Capital marks a strategic shift to boost Ageas UK’s market share in motor and home insurance.
Boosting Revenue and Expanding Reach
Ageas said the acquisition would allow its UK division to expand its customer base and increase annual revenue to £3.25 billion by 2028. The company also plans to use esure’s strong digital platform to improve its presence on price comparison websites.
esure Adds Strong Online Capabilities
“esure is a significant addition,” said Ageas UK CEO Ant Middle. “As demand for motor and home insurance grows, Ageas will be perfectly positioned to gain market share and become the insurer of choice for our existing and new customers.”
esure’s Performance and Integration Timeline
In 2024, esure generated over £1 billion in gross written premium, highlighting its strong position in the market. The acquisition will be financed through a combination of cash, debt, and equity. Ageas expects the deal to close in the second half of 2025.
Strategic Benefits and Cost Savings
The integration of Ageas UK and esure is scheduled for completion during the current strategic cycle ending in 2027. Ageas anticipates annual cost savings of more than £100 million before tax, once fully implemented. The deal is also projected to raise the company’s return on equity by over 1 percentage point on a run-rate basis.
Conclusion
This acquisition represents a major milestone for Ageas in its effort to strengthen its UK presence. With esure’s digital strengths and customer base, Ageas is set to become a leading force in the British insurance market.
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