Saga completes sale of insurance underwriting business to Ageas

Published 01/07/2025, 14:12
Saga completes sale of insurance underwriting business to Ageas

LONDON - Saga plc has completed the sale of its insurance underwriting business, Acromas Insurance Company Limited (AICL), to Ageas (EBR:AGES) (UK) Limited, the company announced Tuesday.

The transaction, which was first announced on December 16, 2024, received all necessary regulatory approvals and satisfied other conditions required for completion.

The final proceeds from the sale exceeded previous guidance by £17.0 million. Saga received net proceeds of £50.0 million after costs and deductions, which is £7.0 million higher than previously indicated. The company also received £10.0 million in pre-completion dividends from AICL.

Ageas UK acquired AICL for a base consideration of £65.0 million. After adjustments related to net asset value and deductions for the Group’s properties and pension debt, the expected consideration totals £64.4 million. Saga has received 90% of this amount, with the remaining 10% due in approximately three months following finalization of completion accounts.

An additional £2.5 million will be payable when the Affinity Partnership between Ageas and Saga Services Limited commences, which is expected in the fourth quarter of 2025. This is separate from an additional £80.0 million consideration that will be paid when the partnership goes live.

According to the press release statement, the completion represents a significant milestone in Saga’s strategy, simplifying its insurance operations and eliminating underwriting risk. The transaction is described as an important step toward establishing a full motor and home insurance partnership with Ageas subsidiaries later this year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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