Ageas Acquires British Insurer Esure in 13 Billion Pound Deal Creating Third Largest Motor and Home Insurance Provider

The Belgian insurance giant Ageas has sealed a £1.3 billion cash acquisition of Esure from American private equity firm Bain Capital, establishing the combined entity as Britain’s third-largest motor and home insurance provider.

The landmark transaction marks a significant shift in the UK insurance landscape, coming seven years after Bain’s initial £1.2 billion purchase. The original deal had delivered a substantial £360 million windfall to Esure’s founder, Sir Peter Wood, who established the online insurance seller in 2000 through a joint venture with Halifax.

Esure, which operates prominent brands including Sheilas’ Wheels and First Alternative, has grown into a major force in British insurance. The company generated premiums of £1 billion from more than 2 million policies in 2024, whilst Ageas has built a strong presence serving over four million UK customers through its broker-focused strategy.

Hans De Cuyper, Ageas group chief executive, outlined ambitious plans to achieve UK revenues of £3.25 billion by 2028, emphasising the strategic importance of market leadership. “In every market where we operate, we aim to take leading positions. This allows us to build optimal customer journeys and leverage technology, data and artificial intelligence effectively,” De Cuyper stated.

The deal’s financing structure includes surplus cash, potential debt or equity issuance, and a two-year bridging loan from Bank of America and Deutsche Bank. The merger is expected to yield annual cost savings exceeding £100 million, with completion anticipated in the second half of 2025, subject to regulatory approval.

David McMillan, Esure’s chief executive, highlighted the complementary nature of the merger: “This union creates a robust platform for continued innovation, combining Ageas’s scale and broker relationships with Esure’s retail brands and data capabilities. The shared technology platform will enhance our ability to serve customers and drive growth.”