Ageas to acquire part of Saga’s insurance business in 20-year deal
Saga, the financial services and travel provider for over-50s, has begun a 20-year partnership for motor and home insurance with Belgian insurance giant Ageas.
Ageas’ UK arm will take over Saga’s price-comparison website, pricing, claims and customer service activities, while Saga will hold onto brand and direct marketing.
Under the terms of the deal, Saga will receive £80m subject to the publication of its interim accounts for the six-month period ended 31 July 2025, without “material uncertainty or an auditor qualification,” as well as the extension or refinancing of a corporate bond maturing in July 2026.
The insurance broker will also receive as much as £30m in 2026 and again in 2032 if policy volume and profitability targets are met, as well as commission based on a percentage of premiums.
In addition to the new partnership, Ageas is set to acquire Saga’s insurance underwriting business for £67.5m, which will be completed in the second quarter of next year.
The company’s travel insurance partnership with Collison and private medical insurance deal with Bupa won’t be affected by the deal.
News first emerged of a deal between the two in October after Ageas’ bids for Direct Line were rebuffed.
Saga previously held talks with the Australian firm Open about a possible sale of its insurance arm, called Acromas, but these discussions fell apart in March 2023.
It has been reported that Saga is also in talks over a similar partnership deal for its cruise business, but these are not as advanced.
“This is a complementary partnership which leverages the strength of the Saga brand and customer base, along with Ageas’s extensive and growing UK insurance expertise,” said Saga CEO Mike Hazell.
“Together, we represent a winning combination. 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.”