LONDON (Reuters) – Belgian insurer Ageas has entered exclusive negotiations to form a 20-year motor and home insurance broking partnership with Saga, a British company specializing in holidays for those over 50, both firms announced on Friday.
As part of the agreement, Ageas plans to purchase Saga’s insurance underwriting division for £67.5 million ($88.1 million).
The partnership would place Ageas in charge of operating Saga’s motor and home insurance broking business, which managed over £479 million in gross written premiums in the year ending July 31, 2024, according to statements from the two companies.
Ageas UK will provide an upfront payment of £80 million to Saga. Additionally, Saga could receive further payments of up to £30 million in 2026 and another £30 million in 2032, depending on meeting certain volume and profitability targets.
“This partnership would create a winning combination,” said Saga’s Chief Executive, Mike Hazell, in a statement.
In its own statement, Ageas highlighted that the deal aligns with its goal to strengthen its presence in the non-life insurance market across Europe, while also focusing on products tailored to an aging population.
However, Ageas acknowledged that the deal would have a 5% negative impact on its solvency position.
“This transaction allows us to expand in a market where we already possess strong expertise,” said Ageas CEO Hans Cuyper.
Earlier this year, Ageas abandoned efforts to acquire British insurer Direct Line.
($1 = £0.7666)
(Reporting by Shanima A in Bengaluru and Carolyn Cohn in London; Editing by Sonia Cheema and Emelia Sithole-Matarise)
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