Ageas has agreed, subject to regulatory approval, to sell its 100% shareholding in Ageas Protect Limited (its UK Life Protection company) to AIG for a total consideration of GBP 181 million. The transaction is expected to be completed by the end of the year.
Ageas Protect was launched in the UK in July 2008 and now has a 4.8% share in the total UK individual protection market1. Ageas in the UK is primarily a Non-Life business with over nine million customers and significant positions in the general insurance market being the second largest Motor insurer, sixth largest general insurer and the fourth largest Personal Lines Intermediary. The focus for Ageas in the UK is to continue to develop these Non-Life positions in line with its strategy.
At the end of 2013, total income for Ageas UK was GBP 2,116.8 million including Ageas Protect GWP of GBP 91.8 million. Profit for Ageas UK was GBP 85.2 million including a loss for Ageas Protect of GBP (1.8) million. During the first six months of 2014, Ageas Protect posted total GWP inflow of GBP 52.5 million and a post tax profit of GBP 1.0 million.
Net proceeds, after costs and the repayment of GBP 26 million subordinated debt, will be upstreamed to the General Account at Ageas level and the resulting capital gain will be communicated on closing of the transaction.
Announcing the transaction, Andy Watson, CEO of Ageas UK said:
“Ageas Protect has developed into a great company, with a strong reputation for service and innovative products. Much of that is down to the incredible hard work and vision of the whole Ageas Protect team, creating a well respected proposition in the UK Individual Protection market. It was a tough decision for us but ultimately, our main focus in the UK is in developing our businesses in the Non-Life market where we have considerable scale and hold significant market positions. We know that Ageas Protect employees are going to a good home where they can further develop the business.”
Darren Spriggs, Managing Director of Ageas Protect said:
“I’m very proud of all that the Ageas Protect team have achieved in building a great company from scratch. We have a strong presence and close relationships with our IFAs, partners, customers and suppliers based on the delivery of award-winning service, systems and processes and that delivery will most definitely continue. Ageas has supported us all the way through our growth but we all feel that now is the right time to move to the next stage of our development and we are really excited about the opportunities AIG will create for us.”
Ageas UK was advised by Fenchurch.
Notes to editors
Ageas UK is a leading provider of award-winning Personal, Commercial and Protection insurance solutions in the UK. Ageas UK distributes both its Non-Life and Life products through a range of channels including brokers, IFAs, intermediaries, affinity partners and the Internet, as well as through its retail strategy and its wholly or partially-owned companies trading as Ageas Insurance, Ageas Protect, Ageas Insurance Solutions, Castle Cover, Kwik Fit Financial Services, RIAS and Tesco Underwriting.
Insuring around eight million customers and working with a range of partners, Ageas is recognised for delivering consistent and high-quality customer experiences. It employs over 6,000 people with offices based across the UK.
Ageas is an international insurance group with a heritage spanning 190 years. Ranked among the top 20 insurance companies in Europe, Ageas has chosen to concentrate its business activities in Europe and Asia, which together make up the largest share of the global insurance market. These are grouped around four segments: Belgium, United Kingdom, Continental Europe and Asia and served through a combination of wholly owned subsidiaries and partnerships with strong financial institutions and key distributors around the world. Ageas operates successful partnerships in Belgium, the UK, Luxembourg, Italy, Portugal, Turkey, China, Malaysia, India and Thailand and has subsidiaries in France, Hong Kong and the UK. Ageas is the market leader in Belgium for individual life and employee benefits, as well as a leading non-life player through AG Insurance. In the UK, Ageas is the second largest Motor insurer and has a strong presence in the growing over 50s market. Ageas employs more than 13,000 people in the consolidated entities and over 30,000 in the non-consolidated partnerships, and has annual inflows of more than EUR 23 billion.