Bain Capital has agreed to sell UK-based personal lines insurer Esure to Belgium’s Ageas in a deal valued at approximately €1.5bn (£1.3bn), marking a significant private equity exit from the UK insurance market.

The transaction, expected to complete in the second half of 2025 pending regulatory approval, follows Bain’s acquisition of Esure in 2018 for £1.2bn. Since then, the private equity firm has supported a digital and operational transformation that culminated in a strong financial turnaround. Esure generated £1.3bn (€1.5bn) in revenue and £146.7m (€126.8mn) in trading profit in 2024, rebounding from a loss in the previous year.

Ageas, which previously made unsuccessful takeover attempts for Direct Line, said the acquisition will unlock at least £100m (€115.8mn) in annual pre-tax synergies and grow its UK market revenue to £3.8bn (€3.3bn) by 2028. Esure’s brand portfolio includes Sheilas’ Wheels and First Alternative, and it operates a strong presence on price comparison websites.

Hans De Cuyper, CEO of Ageas Group, stated the deal would position Ageas UK among the top three personal lines insurers. Esure CEO David McMillan highlighted the complementary nature of the firms’ broker relationships, technology platforms, and brand portfolios.

The deal comes amid shifting dynamics in the UK insurance market, with the government investigating pricing practices and top-tier consolidation reshaping the competitive landscape. Ageas’s acquisition follows Aviva’s recent £4.3bn (€5bn) agreement to acquire Direct Line, cementing its leadership in both motor and home insurance segments.

For Bain Capital, the sale represents a successful realisation of its five-year investment in Esure, capping off a period of operational improvement and growth in market share.

Source: MSN