Ageas UK Limited (Ageas) can today confirm the completion of the agreed transfer of its 50.1% stake in Tesco Underwriting to Tesco Personal Finance Plc. (‘Tesco Bank’).
Ageas UK expects to receive total cash proceeds1 of GBP 111 million in relation to this transaction since its announcement in October 2020. Ageas has also received a reimbursement of an internal loan for an amount of £21m.
This move supports Ageas’s recently announced business strategy to focus on its core business and the broker and aggregator distribution channels.
Ant Middle, Ageas UK CEO said:
The success of Tesco Underwriting over the last ten years is further evidence of our credentials and expertise for building strong partnerships and we are justifiably proud of the progress made by this business.
Nevertheless, now is right time for us to hand over to Tesco Bank as we move our focus to building on our core strengths in our heartland of personal lines insurance through the broker and aggregator channels.
We wish Tesco Bank every success in further enhancing its insurance proposition while we confidently deliver our new strategy and continue to build our future in our chosen markets.
1 The final amount depends on the evolution of the Net Asset Value of Tesco Underwriting between 31 December 2020 and the closing date.