Ageas announces exclusive negotiations with Saga
Belgian insurer Ageas has entered into exclusive negotiations with Saga, the UK specialist provider of products and services to people over 50, to establish a 20-year partnership with Saga Services Limited for the distribution of personal lines car and home insurance products to Saga’s customers.
Under the proposed transaction, Ageas UK would enter into a 20-year affinity partnership with SSL, Saga’s insurance broking business, which distributed in excess of £479 million in gross written premiums in the 12-month period ended 31 July 2024 across its motor and home insurance products. The proposed transaction represents a total cash payment of £147.5 million, subject to customary completion adjustments, with a potential additional contingent consideration of up to £60 million, subject to meeting agreed policy volumes and profitability targets. As part of the deal, Ageas would acquire Saga’s in-house insurer, Acromas Insurance Company Limited for a total consideration of £67.5 million, subject to customary completion adjustments.
Saga had ~1.4 million policies in force as of July 31, 2024.
Completion of the AICL transaction remains conditional on the signing of definitive transaction documentation and regulatory approvals.
Saga, created over 70 years ago, is a specialist in the provision of products and services for people over 50. The Saga brand is one of the most “recognized and trusted” in the UK.
“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.” – Hans De Cuyper, CEO of Ageas.
“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.” – Ant Middle, CEO of Ageas UK.
“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.” – Mike Hazell, CEO of Saga.
