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.