The purchase is part of Ageas UK’s multi-distribution strategy and will increase its customer numbers to around 8 million. Within Ageas UK’s Retail operation*, the acquisition will create a combined retail customer base of 2 million and builds on the significant presence it already has in this growing market through over 50s specialist RIAS. The acquisition further consolidates Ageas UK’s position as the fourth largest Personal lines broker in the UK.
With around 280,000 customer policies, the reported revenue of Castle Cover in 2010 was GBP 22 million and would bring Ageas’s total Retail revenues to around GBP 200 million**.
Announcing the transaction, Barry Smith Chief Executive of Ageas UK said:
“The acquisition of Castle Cover gives Ageas an even stronger over 50s market presence, adding an established brand to our Retail operation and enhancing our proven knowledge in this growing insurance market. This purchase supports our multi-distribution strategy and will build on our existing expertise which is focused on meeting the needs of this customer group.”
Andy Watson, Managing Director UK Retail said:
“We are delighted that Castle Cover will be joining Ageas UK’s Retail operation. Castle Cover has shown an impressive growth record in the short time that they have been in the market. The combined expertise with RIAS provides a great opportunity for future growth.”
Andy Cole, Marketing Director Castle Cover said:
“This acquisition supports the success that Castle Cover has achieved in its five years of trading. Becoming part of Ageas will allow Castle Cover to grow its customer base further and enhance its reputation as a leading provider of 50+ insurance.”
Castle Cover will continue to operate under its brand name and will become a subsidiary company of Ageas UK which will now employ over 4,500 people in the UK. Janet Connor will be Managing Director of both RIAS and Castle Cover.
* Ageas UK’s existing retail operations consist of RIAS, Kwik Fit Insurance Services and Ageas Insurance Solutions (UKAIS).
** Based on 12 months of Kwik Fit Insurance Services, RIAS and UKAIS revenues.