AXA to buy Ageas UK commercial lines business with 100 staff for £47.5m
AXA’s UK insurance arm ( AXA UK&I) is to acquire the commercial lines front book business of Ageas UK for the initial consideration of £47.5 million. The move will see Ageas exit commercial lines underwriting in the UK, with the transfer of around 100 employees to AXA in a bid to enhance its focus on personal lines.
The acquisition will see Ageas UK’s commercial business renewals transfer to AXA Commercial from July 2022, excluding the back book, which will remain with Ageas.
As part of the deal, around 100 Ageas UK employees will move to AXA Commercial.
AXA hopes the acquisition will strengthen its growth strategy in commercial lines, as well as broker partnerships, particularly in the SME and Schemes market segments. While Ageas UK aims to focus on its personal lines business after the sale.
The transaction will have an initial impact of €45.5 million on the net results, to be recorded in the first half of 2022, Ageas noted.
Hans De Cuyper, chief executive officer of Ageas said: “With this transaction, Ageas UK takes another important step in further developing its Personal lines business.
“I want to explicitly thank the employees who will move on to continue their career with their new employer as well as those who will remain with us for their many years of service and commitment to Ageas and wish them every success for the future.”
Jon Walker, chief executive officer at AXA Commercial, said: “This acquisition is a positive step in the growth of our commercial business and further cements our commitment to the SME and Schemes market segments. I look forward to welcoming the new members of the AXA Commercial team and the additional underwriting and operational expertise they bring. AXA is committed to being a partner of choice for our customers both by continuing to strengthen our business, and by developing new propositions, designed to respond to customer needs.”
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