Belgian insurance giant Ageas has agreed to buy Esure, the UK-based owner of the Sheilas’ Wheels brand, for £1.295 billion, it said on Monday.

Ageas said it had agreed a deal with Esure’s owners, investment group Bain Capital, which will create the third-largest platform in the UK for personal lines such as motor and home insurance.

Hans De Cuyper, Ageas’ chief executive, said the deal comes after several years of “significant growth” in the UK market for the Belgian company.

Esure has undergone a turnaround in recent years, and made a trading profit of £127 million in 2024 compared to a loss the year before, while turnover grew by one-sixth to £1.1 billion.

It offers car and home insurance and has about two million customers, with Sheilas’ Wheels and First Alternative as its leading brands.

The company went public in 2013, with a listing on the London Stock Exchange, before Bain bought it for £1.2 billion five years later.

The deal with Ageas is the latest in a period of consolidation in the UK insurance market, after Aviva agreed to buy Direct Line last year.

Ageas had also made two bids to buy Direct Line, which represented a similar opportunity to grow its exposure to the UK’s personal lines insurance sector, but ultimately abandoned the effort in 2024.

The deal to buy Esure is expected to complete in the second half of this year, subject to regulatory approval.

Ant Middle, Ageas’ UK boss, added: “As demand for motor and home insurance grows, Ageas will be perfectly positioned to gain market share and become the insurer of choice for our existing and new customers.”

“We want to continue to grow our broker and partnerships personal lines business in the UK, and Esure will help us to rapidly expand our direct distribution, our customer reach, and our scale overall.

“Esure’s technical capabilities will match Ageas UK’s and will enable us to develop our well-balanced business at greater pace and serve a wider range of customers. We’re really excited for the potential this brings our UK business and wider group.”

David McMillan, Esure chief, said the companies are “two highly complementary businesses and creates an even stronger platform for continued innovation, growth and excellent delivery for our customers”.

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