AXA Insurance UK announced the acquisition of the renewal rights to Ageas UK’s commercial business for an initial consideration of £47.5 million (US$64.3 million).
The deal will see Ageas’ Commercial lines business transfer to AXA from July 2022, while existing back book policies will remain with Ageas. Around 100 Ageas UK employees will move to AXA Commercial to provide ongoing support and service delivery.
Ageas UK, which is a subsidiary of the Belgium-based insurer, Ageas, said the sale is aligned with its strategy to focus on growing its intermediated personal lines business.
“The sale of our commercial lines business is an important step in our strategy to focus on growing our heartland of intermediated personal lines business, particularly where it’s traded electronically,” commented Ant Middle, CEO at Ageas UK. “While we’ve modestly grown in commercial lines over the last couple of years, our focus is now elsewhere.”
Ageas’ commercial lines business is targeted at the small and medium-sized enterprises (SME) and schemes market, which includes shopkeepers, property owners, offices and surgeries, homeworkers, tradespeople, and professionals.
This acquisition does not include the back book, which will remain with Ageas UK.
Both insurers said they will work closely together to ensure a seamless transition for employees, brokers, and their customers.
AXA said the acquisition further strengthens its growth strategy and commitment to its commercial business customers and broker partnerships, particularly in the SME and schemes market segments.
“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,” commented Jon Walker, chief executive officer at AXA Commercial.
AXA Insurance is the UK subsidiary of the French insurer AXA Group.
Source: AXA Insurance UK and Ageas UK
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