The agreement includes the sale of Saga’s Insurance Underwriting business, Acromas Insurance Company Limited (AICL), which Saga says marks a significant transaction aimed at optimising its strategic position in the insurance market.
The partnership, referred to as the Affinity Partnership, will combine Saga’s brand and customer base with Ageas’s UK insurance expertise. It is expected to expand Saga’s motor and home insurance business, introducing new products and services, while Ageas takes responsibility for pricing, underwriting, claims handling, and customer servicing.
As part of the deal that was first reported in October, Saga will maintain control over branding and direct marketing. The partnership is set to commence in late 2025, with a 20-year term.
Saga’s Group CEO, Mike Hazell (pictured above, left), described the partnership as a step forward for Saga Insurance, leveraging the brand’s customer base and Ageas’s growing UK insurance capabilities.
“Our joint scale and unrivalled knowledge of the over 50s insurance market represents a strong platform from which we can serve even more customers with relevant, innovative and intuitive products. For Saga more broadly, this agreement is in-line with our stated partnership strategy. It demonstrates clear progress as we move to pay down debt and target long-term sustainable growth – for the benefit of all our stakeholders,” he said.
Under the terms of the transaction, Ageas will pay Saga’s Insurance Broking business, Saga Services Limited (SSL), an upfront consideration of £80 million, subject to certain conditions. Contingent payments of up to £30 million are tied to policy volume and profitability targets in 2026 and 2032.
SSL will also earn commission based on gross written premiums over the partnership’s duration. SSL’s existing arrangements for travel and private medical insurance with other partners are unaffected.
As part of the deal, Ageas will also acquire AICL for £65 million, with an additional £2.5 million payable following the operational start date of the partnership. The sale is expected to close in the second quarter of 2025, subject to regulatory approval and other conditions.
Ant Middle (pictured above, right), CEO of Ageas UK, said the agreement represents a significant milestone for Ageas and creates opportunities to better serve the over-50s market.
“This agreement marks an important milestone in the development of Ageas UK, and we are excited about the opportunities this partnership brings,” Middle said. “In particular, I would like to extend my thanks to the management team at Saga for their dedication and collaboration throughout this process.”
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