Ageas and Allianz are considering potential bids for UK motor and home insurer esure according to Reuters. Meanwhile, research by GlobalData suggests that the sale of esure to either of these insurers could significantly reshape the private motor insurance market.
GlobalData’s UK Top 25 General Insurance Competitor Analytics reveals that esure held a 4.9% share of the private motor insurance market in 2023, generating gross written premiums of £752m, making it the ninth-largest insurer in the market. If Allianz (which holds a 10.2% market share) or Ageas (9.4%) were to acquire esure, it would have a substantial impact on their market standing. A successful bid by Allianz would elevate the company above Aviva (10.6%), securing second position in the market. Meanwhile, an acquisition by Ageas would propel the insurer from sixth place to second.
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Top ten private motor insurers by market share, 2023
According to Reuters, Belgium-based Ageas has enlisted financial advisors to assess a potential bid for esure as part of its strategy to expand its footprint in the UK personal lines insurance sector. Similarly, Germany-based Allianz has also been evaluating a bid in recent weeks. The bidding process will consist of a single round; a final deadline will be set in the coming weeks. However, insiders caution that a deal is not guaranteed. Offers for esure are expected to be in the region of £1.5bn.
If either insurer successfully acquires esure, the move could significantly reshape the competitive landscape, particularly in challenging Admiral and Aviva at the top of the market. The integration of esure’s portfolio would provide the winning bidder with a larger customer base and potential cost efficiencies. However, the extent to which the move would strengthen distribution channels is uncertain. Additionally, the deal may attract regulatory scrutiny, particularly regarding competition and its impact on consumers.
