Belgium's Ageas in exclusive talks for insurance broking partnership with UK's Saga (updated)
11/10/2024 08:14
(Adds dateline, changes sourcing in first paragraph, adds detail, background)
LONDON, Oct 11 (Reuters) - Belgian insurer Ageas AGES.BR is in
exclusive talks to set up a 20-year motor and home insurance broking partnership
with British over-50s holiday group Saga SAGA.L , the two companies said on
Friday.
Under the deal, Ageas would also buy Saga's insurance underwriting business
for 67.5 million pounds ($88.1 million).
The partnership would see Ageas UK operate Saga's motor and home products
broking business, which distributed products with gross written premiums of more
than 479 million pounds in the year to July 31, 2024, the companies said.
Ageas UK would pay Saga 80 million pounds upfront and Saga may receive up to
30 million pounds in 2026 and up to 30 million pounds in 2032, subject to volume
and profitability targets.
The deal "would create a winning combination," Saga Chief Executive Mike
Hazell said in a statement.
Ageas said in a separate statement that the deal would fit with its plans to
build on its non-life presence in Europe, as well as on its focus on products
for an ageing population.
The deal would have a negative impact on Ageas' solvency position of 5%, it
said.
"This transaction allows us to grow in a market where we already have real
strength and expertise," said Ageas CEO Hans Cuyper.
Ageas abandoned attempts to take over British insurer Direct Line DLGD.L
earlier this year.
($1 = 0.7666 pounds)
(Reporting by Shanima A in Bengaluru and Carolyn Cohn in London; Editing by
Sonia Cheema and Emelia Sithole-Matarise)
((carolyn.cohn@thomsonreuters.com))