Belgian insurer Ageas has strengthened its foothold in the UK personal lines insurance market by acquiring Esure from Bain Capital for nearly £1.3 billion. This strategic acquisition is expected to make Ageas the UK’s third-largest personal lines insurer. The deal forms part of Ageas’s Elevate27 plan, focusing on expanding operations in core European markets while enhancing distribution capabilities in the UK.
Merging Esure’s digital focus with Ageas’s extensive broker relationships, the acquisition targets a broad demographic. Ageas aims to leverage Esure’s technological strengths to bolster its own digital and data analytics capabilities. The combined entity is projected to reach £3.25 billion in gross written premiums by 2028, with annual cost savings exceeding £100 million.
Financially structured using surplus cash, debt, and equity instruments, the acquisition secured a bridge facility supported by BofA Securities and Deutsche Bank Luxembourg. Nonetheless, Ageas’s Solvency II ratio is anticipated to remain above 200%, with minimal impact expected.
Ant Middle, leader of Ageas UK, highlighted the merger’s potential to enhance market share in motor and home insurance. Esure CEO David McMillan also emphasized operational synergies, combining technological capabilities with financial scale and broker relationships.
The acquisition aligns with Ageas’s goal to balance its portfolio and enhance shareholder value. Recently, Ageas’s deal with Saga, including acquiring Acromas Insurance Company Limited, and a 20-year underwriting partnership, reflects robust expansion efforts. This transaction marks a significant consolidation in the UK insurance market, poised to leverage technology and diversified channels for growth.
