Belgium's Ageas aims to be UK 'podium player' with esure acquisition

By Aidan Gregory

April 14 - (The Insurer) - Ageas’ acquisition of esure will transform the Belgian insurer into a “podium player” in UK personal lines, with significant capital benefits for the wider group, Ageas UK CEO Ant Middle said on Monday.

• Deal gives Ageas long-desired scale in UK P&C

• Belgian insurer has 'real confidence' in its bid for esure despite volatility: UK CEO Middle

• Fresh spike in inflation is a concern amid tariff uncertainty

Speaking to The Insurer following the announcement of the 1.3 billion pound ($1.7 billion)deal, Middle said esure represented “the right opportunity at the right time” for Ageas to accelerate its growth in the UK market.

“We’re highly complementary businesses and we have real heritage and strength in B2B business, particularly with brokers and partnerships," he said.

Middle said the deal would broaden Ageas' customer reach and footprint, as well as accelerating its technology and data journey. He also highlighted esure's distribution strengths, through both direct-to-consumer channels and price comparison websites.

"That combination brings a real balance and resilience, and flexibility for the business," he said.

The deal continues Ageas' efforts to scale up in the UK. The Belgian insurer made two failed bids to acquire Direct Line last year, and also agreed in October to acquire Saga's underwriting business and form a 20-year partnership.

Ageas said on Monday that it expects the esure transaction to power its UK top line to 3.25 billion pounds by 2028, and give it a top-three share of the UK personal lines market, behind only Aviva/Direct Line and Admiral.

Middle said it will also significantly diversify Ageas’ group revenues outside of its life insurance business and continental Europe.

“This clearly increases our non-life component and broader financial benefits to the group, as well in terms of diversification,” he said.

The deal was agreed despite the volatile macroeconomic backdrop triggered by recent U.S. tariff announcements.

“We’re highly cognisant of what’s going on in the wider world,” said Middle. “What really built confidence for us in terms of this deal was that we have been able to take time to really understand the business, and do our work with real diligence to get to a point where we had built real confidence in terms of what we wanted to do and the quality of the business that is esure.”

Middle said the tariffs do bring the potential for a resurgence of claims inflation.

“In terms of the direct impact on a P&C player in our market, we would be in one of the better positions, but we have to be alive to the potential effects that could bring in terms of the likes of inflation,” said Middle. “We have just been through an inflation spike back in 2021-2022, and that does bring challenges that you need to be alive to.”

Middle said Ageas has seen a “stabilisation” of pricing in 2025 following a period of softening in the second half of 2024.

“The general uncertainties of the wider world and some of the factors locally in the UK market with things like the regulatory agenda means that we have seen a stabilisation of pricing over the last month or two,” said Middle. “We will see what the next few months bring.”