Ageas has agreed with Bain Capital to acquire esure, a digital UK personal lines insurer, for a cash consideration of £1.295 billion.
Ageas suggested that the acquisition will strengthen its presence in European markets by adding a controlled entity, enhance its positioning in the UK, create shareholder value through expected synergies, and boost its cash generation.
The combination of Ageas UK and esure, known for its strong positioning on UK price comparison websites (PCWs), will reportedly create the UK’s third-largest personal lines insurance platform.
Fully aligned with Ageas’s strategic M&A priorities under the Elevate27 plan, the acquisition of esure will also allow Ageas UK to accelerate the diversification of its distribution strategy by expanding into the critical PCW channel.
“The acquisition of esure creates significant potential for operational synergies and capital benefits to be realised in the medium term. We expect economies of scale in our UK personal lines portfolio and the accelerated implementation of the EIS IT platform, including esure’s complementary claims module, to drive operational efficiencies and cost avoidance for Ageas UK. Continued focus on technology, data and AI is expected to create further competitive advantages. In addition, capital benefits from enhanced diversification and the inclusion of esure in Ageas’s partial internal model are expected to emerge over time,” Ageas said.
According to the firm, the transaction will be financed through a combination of surplus cash and newly issued senior and hybrid debt and/or equity within the existing authorisations and subject to market conditions.
The completion of the transaction is expected to occur in the second half of 2025 and remains subject to regulatory approvals.
Hans De Cuyper, Ageas Group CEO, commented, “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.
“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. We remain, of course, committed to our Elevate27 financial objectives, including our commitment to a progressive dividend policy, and will observe the full synergies of this transaction in the forthcoming strategic period.”
Ant Middle, Ageas UK CEO, said, “esure is a significant addition to the Ageas UK business and aligns perfectly with our growth strategy. 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.
“The combined Ageas and esure franchise will benefit from an outstanding customer offering, through market leading technology and prominent brands, that will drive our expansion into new customer demographics.
“Under Elevate27, we want to continue to grow our broker and partnerships personal lines business in the UK, and esure will help us to rapidly expand our direct distribution, our customer reach, and our scale overall.
“esure’s technical capabilities will match Ageas UK’s and will enable us to develop our well-balanced business at greater pace and serve a wider range of customers. We’re really excited for the potential this brings our UK business and wider Group.”
David McMillan, esure Group CEO, 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.”
Luca Bassi, Partner at Bain Capital, noted, “We are pleased to have supported esure through its transformation and growth journey. During our ownership, esure has built the leading tech platform in UK insurance and their highly efficient operations have set a new standard for the industry.
“This transaction is a testament to esure’s strong market position and the state-of-the-art technology platform built under Bain Capital’s tenure, with the business now at record levels of profitability. We are confident that Ageas is the right partner to continue this legacy of success and innovation.”
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