Ageas in talks to acquire Saga’s underwriting unit and form UK broking partnership

International insurance group Ageas has confirmed that it has entered into exclusive negotiations to ink two major deals with Saga plc, a UK specialist provider of products and services to people aged over 50.

The proposed transaction would see both organisations establish a 20-year partnership for the distribution of personal lines motor and home insurance, as well as Ageas acquiring Saga’s Insurance Underwriting business, Acromas Insurance Company (AICL).

From what we understand, the proposed transaction represents a total cash payment of £147.5 million, subject to customary completion adjustments. It also comes with a potential additional contingent consideration of up to £60 million, subject to meeting agreed policy volumes and profitability targets.

This comes as Ageas looks to grow its non-life presence across Europe, as well as its position in the personal lines UK market.

Readers will recall that Ageas recently unveiled Elevate27, the company’s new strategic plan for 2025-2027, aimed at enhancing the firm’s performance by focusing on profitable growth, technical insurance leadership, operational excellence, and improving customer experience.

Commenting on the deal, Hans De Cuyper, CEO of Ageas, said: “We eagerly anticipate further strengthening our partnership with Saga, a well-known brand in the UK. This proposed deal aligns seamlessly with the Ageas Group recently launched Elevate27 strategy, which aims to leverage our strong European presence in Non-Life, add scale to our business, and benefit from material capital diversification.

“This transaction allows us to grow in a market where we already have real strength and expertise. Ageas has a longstanding tradition of successful partnerships, and we are confident that this collaboration with Saga will open new avenues for creating and accelerating profitable growth.”

Ant Middle, CEO of Ageas UK, commented: “This proposed deal with Saga aligns perfectly with our strategy to profitably grow in UK personal lines and in creating powerful partnerships to the benefit of our customers. Deepening our relationship with Saga unlocks even more opportunity to increase our competitiveness in a rapidly expanding over 50s customer segment; an area where we already have real strength and expertise.

“It also draws on our strengths of technical and operational excellence, and customer care, providing more potential for us to leverage the significant investments made in our business over the last three years and offer our expertise in meeting the unique needs of Saga’s customers.”

Under the proposed affinity partnership, Ageas’ UK arm would team with Saga’s broking business, Saga Services Limited (SSL), for the distribution of motor and home products to customers.

The ambition is to go live by the end of 2025, with Ageas UK paying Saga an upfront consideration of £80 million, payable at or around the ‘go live’ date.

In addition, Saga may also receive contingent consideration of up to £30 million in 2026 and up to £30 million in 2032, subject to certain policy volume and profitability targets being met.

SSL would receive commission on the gross written premium generated over the term of the Affinity Partnership.

Moreover, the proposed AICL acquisition would be worth £67.5 million, with completion of the transaction targeted for the second quarter of 2025.

Mike Hazell, CEO of Saga plc, added: “We are hugely excited at the opportunity to grow our home and motor Insurance business through this proposed partnership with Ageas. The coming together of Saga’s fantastic brand and Ageas’s unrivalled expertise in operating successful affinity insurance partnerships, would create a winning combination. Our joint reputation for delivering exceptional products and services to people over 50 means this partnership would allow us to serve even more customers with great products at excellent value. Saga is a unique business with a long heritage, great people and loyal customers.

“We have been clear for some time that developing a partnership approach is the right strategy, providing us with a capital-light route to growth and the ability to reduce debt, leading to the creation of long-term sustainable value for all our stakeholders.”

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