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Belgian insurer Ageas has struck a £1.3bn deal to buy rival Esure from private equity group Bain Capital, in a move that will create the UK’s third-biggest motor and home insurer.
Ageas said it would pay cash for Esure in a deal that will expand its operations in the UK. Esure, which also trades under brands including Sheilas’ Wheels and First Alternative, has been owned by Bain since it paid £1.2bn to take the group private in 2018.
Esure was set up in 2000 by entrepreneur Sir Peter Wood, who also founded Direct Line, to sell online rather than through high-street brokers. In 2024, it had more than 2.1mn policies and £1bn of revenue from premiums.
The transaction comes after UK motor insurer Direct Line fought off two takeover attempts by Ageas before reaching an agreement with rival Aviva.
Aviva’s acquisition of Direct Line, which is awaiting approval from the Competition and Markets Authority, will create a combined company with more than 20 per cent of the UK motor insurance market.
Asked on Monday about growing consolidation in UK motor insurance, Ageas chief executive Hans De Cuyper said: “We are not going to a monopoly in this market. That’s not what is happening.
“Eventually the customer will benefit from this . . . investing in state-of-the-art customer journeys, customer service is challenging if the price competition is so fierce.”
In an interview with the Financial Times last month, he said Ageas was considering a bid for Esure.
The UK government last year instructed the competition watchdog and the financial regulator to join a task force investigating the high cost of car insurance.
After years of price rises, car insurance policies began to level off last year and have continued to fall during the first quarter of 2025, according to price comparison website Confused.com.
