Belgian insurance group Ageas has reached an agreement to acquire UK insurer esure from Bain Capital for £1.295 billion (€1.510 billion) in a cash transaction that will create the third largest personal lines platform in the UK.

The acquisition, which is expected to complete in the second half of 2025 subject to regulatory approvals, will strengthen ageas's position in the UK market by combining its broker-focused business with esure's strong presence on price comparison websites.

Hans De Cuyper, Ageas group chief executive officer, said: "We are delighted to have reached an agreement to acquire esure. In recent years, Ageas has experienced significant growth in the UK, making it an increasingly important part of the Group. This transaction will allow us to offer competitive value propositions to a wider customer profile via a multi-channel distribution model."

The combined business will diversify Ageas’s distribution strategy while expanding its customer base. esure brings more than 2.1 million policies and gross written premiums of £1 billion to the deal, along with three popular brands - esure, Sheilas' Wheels and First Alternative.

According to Ageas, the integration is expected to generate cost savings of over £100 million per annum before tax, with the transaction projected to deliver an unlevered return on investment of over 12 per cent.

Ant Middle, Ageas UK chief executive officer, commented: "esure is a significant addition to the Ageas UK business and aligns perfectly with our growth strategy. The combined ageas and esure franchise will benefit from an outstanding customer offering, through market leading technology and prominent brands, that will drive our expansion into new customer demographics."

David McMillan, esure Group chief executive officer, added: "This transaction brings together two highly complementary businesses and creates an even stronger platform for continued innovation, growth and excellent delivery for our customers."

Bain Capital acquired esure in 2018. Luca Bassi, partner at Bain Capital, said: "We are pleased to have supported esure through its transformation and growth journey. During our ownership, esure has built the leading tech platform in UK insurance and their highly efficient operations have set a new standard for the industry."

The transaction will be financed through a combination of surplus cash and newly issued senior and hybrid debt and/or equity.

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