Saga PLC (LSE:SAGA) has firmed up a long-running insurance partnership with Ageas which will also involve the sale of its underwriting business.
Ageas will operate Saga’s home and motor insurance products under the 20-year deal and pay £80 million upfront, a statement confirmed on Tuesday.
Further performance-based considerations of up to £30 million will also be paid in each of 2026 and 2032.
Ageas will additionally buy Saga’s underwriting subsidiary, Acromas Insurance Company Ltd, for up to £67.5 million, in line with an announcement in October.
“Together, we represent a winning combination,” Saga chief executive Mike Hazell commented.
“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.”
Completion is expected in late 2025, with Ageas to take on Saga’s price-comparison website, pricing and underwriting, as well as claims and customer servicing activities.
Saga will in turn retain responsibility for brand and direct marketing and be paid commission on gross written premiums.