Saga in exclusive talks to sell underwriting ops to Ageas

Partnership for motor, home insurance (Il Sole 24 Ore Radiocor) - London, 11 Oct - Saga, a UK provider of services to people over 50, said it is in exclusive talks with Belgian insurer Ageas to sell it its Insurance Underwriting business, Acromas Insurance Company Limited (AICL), for 67.5 million pounds and for its Saga Services Limited (SSL) to establish a 20-year affinity partnership for motor and home insurance.

Under the proposed transaction, Ageas UK would operate SSL's motor and home products which consisted of gross written premiums (GWP) of over 479 million pounds in the 12-months to July 31. SSL's existing partnerships with Collinson for travel insurance and Bupa for private medical insurance would be unaffected.

In the affinity partnership, Ageas UK would pay Saga an upfront consideration of 80 million pounds, at or around the go live date plus a possible contingent consideration of up to 30 million pounds in 2026 and up to 30 million in 2032, subject to certain policy volume and profitability targets being met.

SSL would receive commission on the GWP generated over the term of the Affinity Partnership representing the value that SSL will continue to provide through the Partnership.

AAA-Sch

(RADIOCOR) 11-10-24 10:41:56 (0233) 5 NNNN