Strong interest in Esure as bids for insurance provider due in few weeks

There is strong strategic interest for Esure and bids for the motor and home insurance provider are due in a few weeks, Insurance Times understands.

Esure is currently owned by private equity (PE) firm Bain Capital, which acquired the provider in 2018 for £1.21bn.

It was reported in September 2024 by Reuters that the PE firm was looking at a possible sale of the Esure, with advisors being lined up as a result.

Yesterday (11 March 2025), Reuters reported that Ageas has retained advisors to explore a bid for the motor and home insurance provider. Sources also told the publication that Allianz had been working on an offer in recent weeks.

Insurance Times understands that there is strong strategic interest beyond just the two mentioned in reports, who have all hired advisors and are active in management meetings.

This publication also understands that bids are due in a few weeks and confirmatory diligence tailored on buyer requirements shortly thereafter.

Ageas and Allianz have been approached for comment, while Bain Capital did not comment.

Transformation

This comes following consolidation in the UK insurance market. For example, Aviva agreed a deal to buy rival Direct Line Group (DLG) for £3.7bn in December 2024. The deal was recently approved by shareholders.

Ageas also made a move for DLG before Aviva’s bid, with the Belgian insurer wanting to expand in the UK.

The interest from firms in Esure comes following its three-year transformation, which was backed by £200m of investment and resulted in the firm moving its home and motor operations to a new platform.

Esure chief executive David McMillan said that the completion of its wholesale transformation was one of the “biggest” challenges he has undertaken.

Speaking at the Insurance Innovators’ Summit in London in November 2024, McMillan said that the goal was to completely rebuild the business and the way it operated.

He said: “It is by far the biggest challenge I have undertaken in the industry, but it is also the most rewarding.

“There were three key takeaways for me. First culture is king, you need to have a culture in the business that allows and embraces change.

”The second was the challenge of having to refuel the plane while it is still flying. Third is that legacy technology can be an anchor on a company. We released our legacy systems three months after migration.”