Ageas buys Castle Cover for £53m

Ageas UK has snapped up over 50s insurance broker Castle Cover for £52.8m.

Ageas said the acquisition will increase its customer numbers to around eight million.

Within Ageas UK’s retail operation, the acquisition will create a combined retail customer base of two million.

Ageas already owns over 50s specialist RIAS.

Castle Cover has around 280,000 customer policies and reported revenue of £22m in 2010.

It will bring Ageas’s total retail revenues to around £200m.

Ageas UK chief executive Barry Smith said the Castle Cover deal gives Ageas a stronger presence in the over 50s market.

"Adding an established brand to our retail operation and enhancing our proven knowledge in this growing insurance market," he said.

"This purchase supports our multi-distribution strategy and will build on our existing expertise which is focused on meeting the needs of this customer group.”

Castle Cover will continue to operate under its brand name and will become a subsidiary company of Ageas UK which will now employ over 4,500 people in the UK.

Janet Connor will be managing director of both RIAS and Castle Cover.

Andy Watson, managing director UK retail said: “We are delighted that Castle Cover will be joining Ageas UK’s retail operation.

"Castle Cover has shown an impressive growth record in the short time that they have been in the market. The combined expertise with RIAS provides a great opportunity for future growth.”

Castle Cover marketing director Andy Cole said: “This acquisition supports the success that Castle Cover has achieved in its five years of trading.

"Becoming part of Ageas will allow Castle Cover to grow its customer base further and enhance its reputation as a leading provider of 50+ insurance.”