Insurance group behind Sheilas' Wheels snapped up by Belgian rival in £1.3bn deal

The British insurance group Esure, known for brands like Sheilas’ Wheels, has been acquired by Belgian competitor Ageas in a significant transaction valued at £1.3 billion. This acquisition is set to reshape the UK insurance market, creating a new industry giant in the competitive landscape.

Ageas Acquires Esure in £1.3 Billion Deal

Esure, based in Surrey and established by Direct Line founder Sir Peter Wood, was sold by its private equity owner, Bain Capital, to Ageas.

This merger will establish the third-largest player in the UK motor and home insurance sectors. Esure brings approximately 2 million customers, featuring Sheilas’ Wheels and First Alternative as its primary brands. Ageas, already possessing a robust UK presence, serves over 4 million customers and has been strategically expanding its operations in recent years.

Sir Peter Wood’s Substantial Gains

Following Esure’s establishment in 2000, Sir Peter Wood experienced a considerable £200 million benefit when the insurer was listed on the London Stock Exchange in 2013.

He further received £360 million when Bain Capital acquired the company in 2018 for £1.2 billion.

Market Consolidation

The agreement with Ageas represents the latest instance of consolidation within the UK insurance sector. This follows Aviva’s prior agreement to purchase Direct Line the previous year.

Ageas had previously made two unsuccessful offers to acquire Direct Line, viewing it as a similar opportunity to enhance its involvement in the UK personal lines insurance market. However, these efforts were abandoned in 2024.

Strategic Expansion for Ageas

Ageas finalized an insurance partnership with the over-50s organization Saga last year. The acquisition of Esure is anticipated to be finalized in the latter part of this year, pending regulatory clearances.

Ageas, publicly traded on the Brussels stock exchange with a valuation exceeding £8 billion, aims to achieve UK revenues of £3.25 billion by 2028.

Executive Perspectives

Hans De Cuyper, Group Chief Executive of Ageas, expressed enthusiasm: ‘We are pleased to have reached an agreement to acquire Esure.

‘Ageas has seen considerable growth in the UK recently, making it an increasingly vital component of the group.’

Enhanced Customer Reach and Scale

Ant Middle, UK Chief Executive of Ageas, stated: ‘We aim to further expand our broker and partnership-based personal lines business in the UK. Esure will significantly aid in accelerating our direct distribution, broadening our customer base, and increasing our overall scale.’

Esure Chief Executive David McMillan commented on the synergy: ‘Our companies are highly complementary and will create an even stronger foundation for sustained innovation, expansion, and outstanding service for our customers.’

Explore DIY Investing Platforms