Belgian insurer Ageas has engaged advisors to explore a potential bid for British motor and home insurer esure, aiming to strengthen its position in the UK personal lines market, Reuters reported, citing sources.
Germany-based Allianz has also been exploring a possible bid for esure in recent weeks, sources said.
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A single round of bidding will take place, with a deadline set for the coming weeks, although sources have cautioned that a transaction is not assured.
Offers for esure are expected to be approximately £1.5bn ($1.94bn).
Representatives from Ageas, Allianz and esure did not comment.
Esure was established in 2000 by Peter Wood, the former founder of Direct Line.
In 2018, the company was taken private by Bain Capital in a £1.21bn transaction, following its listing on the London Stock Exchange in 2013.
Esure is said to share the same technology platform, EIS as Ageas, making it a potential acquisition target for Ageas.
In the UK, Allianz acquired the general insurance businesses of Legal & General and LV= in 2019.
The company made headlines recently as it entered “exclusive talks” to acquire Viridium in a deal valued at more than $3bn (€2.75bn), according to the Wall Street Journal.
Additionally, a report last month revealed that Allianz is competing with Insurance Australia Group in pursuing a bid for the insurance division of the Royal Automobile Club of Western Australia.
Allianz disclosed net income attributable to shareholders of €2.4bn for the fourth quarter of 2024, a 14.9% increase from €2.1bn in the same quarter of the previous year.
The company’s net income attributable to shareholders was €9.9bn in 2024, up 16.3% from €8.5bn in 2023.
