Belgium’s Ageas has announced its acquisition of UK insurer Esure from Bain Capital for approximately £1.3 billion (€1.5 billion). This deal positions Ageas as the third largest motor and home insurer in the UK, significantly expanding its market presence.

Ageas anticipates annual savings of at least £100 million (€115.8 million) before tax as a result of the acquisition. The company aims to increase its market revenue to £3.3 billion (€3.8 billion) by 2028. The transaction is expected to finalize in the latter half of this year, pending regulatory approval.

Hans De Cuyper, CEO of Ageas Group, emphasized that the acquisition will enable the company to provide competitive offerings to a broader customer base through a multi-channel distribution model. David McMillan, CEO of Esure Group, highlighted the advantages of combining Ageas’s financial strength and broker relationships with Esure’s strong retail brands and data capabilities, which will enhance their customer offerings and growth potential.

Esure, founded in 2000 and owned by Bain Capital since 2018, operates under various brand names, including Sheilas’ Wheels and First Alternative. Bain Capital acquired Esure for £1.2 billion (€1.4 billion) to take it private.

The acquisition follows Ageas's previous attempts to expand its UK operations, including two rejected bids for Direct Line, which were deemed unattractive by the latter’s shareholders. Direct Line is now being acquired by Aviva, the UK’s largest insurer, for £3.7 billion (€4.3 billion), creating a dominant player in the motor and home insurance markets.

Esure reported strong financial performance for 2024, achieving a turnover of £1.1 billion (€1.3 billion), up from £973 million in 2023. The company also recorded a trading profit of approximately £126.8 million (€146.7 million), a significant recovery from a loss of £16.7 million in the previous year.

This acquisition occurs amid a UK government investigation into rising car insurance costs, although prices have recently begun to decline. The merger of Ageas and Esure is expected to enhance competition and innovation in the insurance sector, benefiting consumers in the long run.