A&O Shearman advises Ageas on strategic acquisition of esure from Bain Capital

Strategic acquisition to establish a top-3 U.K. personal lines platform

The acquisition of esure, a leading digital personal lines insurer, aligns with Ageas's strategic priorities under its Elevate27 plan. This move is set to create one of the top three personal lines insurance platforms in the U.K., enhancing Ageas's market presence and operational efficiencies. The combined entity will benefit from a diversified distribution model spanning direct, price comparison websites (PCW), brokers, and partnerships.

The transaction is expected to be completed in the second half of 2025, subject to regulatory clearances.

Key highlights of the transaction

Transaction value: GBP1.295bn (EUR1.510bn)

Strategic fit: The acquisition supports Ageas's goal of becoming a top-3 U.K. personal lines insurer.

Operational synergies: Significant potential for operational efficiencies and cost savings, with projected annual cost savings in excess of GBP100m (EUR115m) before tax.

Financial impact: The transaction is expected to generate an unlevered return on investment of over 12% for Ageas and an uplift in return on equity of more than one percentage point.

Kate McInerney from A&O Shearman said, ‘This is an exciting landmark deal that we were thrilled to advise on. Strategic, significant deals of this sort are what A&O Shearman is made for. There’s an exciting future ahead for Ageas, and we’re very happy to have played a part in that.’