Ageas is carrying out exclusive discussions with Saga, the UK specialist provider of products and services to people aged more than 50, to bolster their ties with the formation of a 20-year partnership.
The proposed 20-year agreement with Saga Services (SSL) will focus on the distribution of motor and home insurance products.
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This move is in line with Ageas’s Elevate27 strategy, aiming to leverage its strong non-life presence in Europe and provide targeted solutions for the ageing population.
The deal also includes the acquisition of Saga’s Insurance Underwriting business, AICL, which is expected to enhance Ageas’s position as a leading personal lines insurer in the UK.
The partnership is expected to add scale to Ageas’s core European market, combining Saga’s insights with Ageas UK’s expertise to create a competitive edge in the over 50s market.
Ageas CEO Hans De Cuyper said: “This proposed deal aligns seamlessly with the Ageas Group recently launched Elevate27 strategy, which aims to leverage our strong European presence in Non-Life, add scale to our business, and benefit from material capital diversification.
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By GlobalData“This transaction allows us to grow in a market where we already have real strength and expertise. Ageas has a longstanding tradition of successful partnerships, and we are confident that this collaboration with Saga will open new avenues for creating and accelerating profitable growth.”
Under the proposed transaction, Ageas UK would reach an Affinity partnership with SSL, which reported more than £479m ($627.5m) in gross written premiums in the 12-month period ending 31 July 2024.
The transaction is valued at £147.5m, with potential additional contingent consideration of up to £60m based on performance targets. Regulatory approvals are pending, and the transaction’s impact on Ageas Group Solvency is estimated at -5%.
The Affinity partnership aims to commence by the end of 2025, with Ageas UK paying an upfront consideration of £80m and potential additional payments based on future performance.
The acquisition of AICL by Ageas UK, for £67.5m, is expected to be completed in the second quarter of 2025, subject to regulatory approvals.
Meanwhile, this March 2024, the firm halted its bid for Direct Line Insurance Group after rejection of two buyout offers.
