Belgium-based insurance group Ageas has agreed to acquire UK digital personal lines insurer Esure from Bain Capital for approximately £1.3bn ($1.7bn).
Esure is known for its digital personal lines insurance with a presence on price comparison websites in the UK.
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The acquisition is in line with Ageas’ priorities under its Elevate27 programme, which focuses on expanding its broker and partnerships personal lines business in the UK.
The deal is set to merge Ageas UK with Esure, forming what it claims will be the third-largest UK personal lines platform in the UK, offering a distribution mix that includes direct, price comparison websites, brokers and partnerships.
Esure, with its fully digital distribution model, operates three popular brands: esure, Sheilas’ Wheels and First Alternative.
In 2024, the company held more than 2.1 million policies and a gross written premium (GWP) of £1bn.
In a press statement, Ageas said: “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.”
The transaction is structured to maintain Ageas’ Solvency II target ratio at 150%, as it was at year-end 2024.
Ageas expects its Solvency II ratio to decrease by only around 10% due to the inclusion of roughly €1bn of own funds instruments in the financing mix.
Ageas Group CEO Hans De Cuyper said: “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 rebalancing our group profile towards businesses with high cash conversion.”
Ageas UK CEO Ant Middle said: “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.”
The deal, which is due to be completed in the second half of 2025, is subject to regulatory approvals.
Last year, Ageas agreed to acquire Saga’s insurance underwriting business and establish a 20-year partnership with the UK insurer.
