Belgium-based Ageas has reached an agreement with Bain Capital to acquire Surrey-based digital personal lines insurer esure for a mammoth £1.3bn.
The move is set to increase the firm’s European markets presence through the acquisition of a controlled entity, reinforce its positioning in the UK, generate shareholder value and enhance its revenues.
The combination of Ageas UK and esure will create the third-largest UK personal lines platform with a distribution spanning direct PCW (price comparison website), brokers and partnerships.
The acquisition comes as Ageas looks to enable growth to a top-line of £3.25bn by 2028.
Surrey-based esure is a leading UK personal lines insurer with a fully digital distribution model through the PCW channel and three popular brands – esure, Sheilas’ Wheels and First Alternative.
In 2024, the company had more than 2.1m policies and revenues of over £1bn from premiums.
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Ageas projects that the transaction will generate a full cost saving potential in excess of £100m per annum, before tax and the transaction is expected to be completed in the second half of 2025, subject to regulatory approvals.
“We are delighted to have reached an agreement to acquire esure. In recent years, Ageas has experienced significant growth in the UK, making it an increasingly important part of the group,” said Hans De Cuyper, Ageas CEO.
“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.
Acquiring esure also supports our strategic ambitions of re-balancing our group profile towards businesses with high cash conversion.”
David McMillan, CEO of esure, added: “This transaction brings together two highly complementary businesses and creates an even stronger platform for continued innovation, growth and excellent delivery for our customers.
“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.
“I am deeply proud of what the esure team has achieved to date. We look forward to working alongside the Ageas team to build the UK’s leading personal lines insurer.”
BofA Securities is acting as financial advisor and Allen Overy Sherman Sterling LLP is acting as legal counsel to Ageas in relation to the transaction, whilst Fenchurch Advisory Partners LLP and Goldman Sachs International served as financial advisors to Bain Capital and esure.
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