Ageas has confirmed that it has signed an agreement to acquire Groupama Insurance Company Limited (GICL) for £116m (equating to around €145m).
The deal will see Ageas become the United Kingdom’s fifth largest Non-Life insurer, fourth largest Private Motor insurer and fourth largest Personal lines insurer.
The acquisition is seen as being a good strategic fit for Ageas, and also complements the firm’s multi-channel distribution approach.
The transaction excludes Groupama’s UK broking operations.
In 2011 GICL reported after-tax profits of £25.9m with a combined ratio of 97.8%.
The deal is subject to regulatory approval, and is anticipated to be be concluded before the end of the year.
Once the acquisition is complete GICL will become a wholly owned subsidiary of Ageas UK.
Ageas UK CEO Barry Smith said that the deal was a great strategic fit for the firm’s continuing development in the UK.