Belgian insurer Ageas buys Esure in £1.3bn deal – Daily Business

Esure, the online insurer, has been sold by the US private equity firm Bain Capital to the Belgian group Ageas in a £1.3 billion deal.

Ageas, the largest insurer in Belgium, is paying cash for the owner of brands such as Sheilas’ Wheels and First Alternative. It will create the third-largest motor and home insurer in the UK.

It said the takeover, due to complete in the second half of this year, would broaden its European presence and bolster its presence in the UK price-comparison website market. It is expected to boost revenues to £3.25bn by 2028. 

The deal comes amid increased M&A activity in the European financial services sector, influenced by regulatory developments that allow banks to acquire insurance companies without incurring significant capital charges related to goodwill, thereby broadening the pool of potential buyers for insurance assets.

Bain is selling seven years after paying £1.2bn for the business, a deal that netted the group’s founder Sir Peter Wood £360 million.

He also set up Direct Line and established Esure in 2000 in a joint venture with Halifax before it was merged with Bank of Scotland to form HBOS.

He was its largest shareholder during its time as a listed company and made a further fortune when the group was taken private by Bain in 2018.

Esure is now one of the largest providers of motor and homes insurance in the UK, generating premiums of £1bn from more than two million policies in 2024.

The Surrey-based group became known during the first decade for its ‘Calm Down Dear’ advertisements starring film director Michael Winner.

It later established the women-focused brand Sheila’s Wheels and acquired price comparison site Gocompare, which it subsequently demerged.