View more on these topics

Ageas acquires Groupama Insurance Company

Ageas has acquired Groupama Insurance Company Limited for £116m.

GICL offers a range of car, motorcycle, home, travel, personal accident and commercial insurance in the UK. It reported a post-tax profit of £25.9m in 2011.

The deal excludes Groupama’s UK broking operations and is subject to regulatory approval. It is expected to complete before the end of 2012, when GICL will become a wholly owned subsidiary of Ageas UK.

Earlier this month, Ageas announced it had entered exclusive takeover talks with GICL.

Ageas chief executive Bart De Smet says: “I welcome this acquisition on its strategic and financial merits and as an important next step in the execution of the Ageas Group strategy towards a well balanced portfolio in terms of life and non-life business.

“Following on from the start of the partnership with Tesco Bank in 2010, and more recently the acquisition of Kwik Fit Financial Services and Castle Cover, this acquisition also reflects the multi-channel, multi-brand distribution strategy of Ageas as a group and more specifically in the UK. In terms of financial merits, the return on investment is expected to exceed Ageas’s minimum return requirement of 11 per cent.”

Ageas UK chief executive Barry Smith says: “This deal is a great strategic fit in the continuing development of Ageas in the UK. Both Ageas and GICL have strong reputations in the UK broker market and this deal reinforces our ongoing commitment to brokers and their customers.

“We pride ourselves on strong relationships with brokers and today’s announcement sends a clear signal that we will continue to support and work closely with them.”

Master Adviser senior partner Roy McLoughlin says: “Ageas is obviously expanding into general insurance but this deal could also have welcome implications for the protection side of the business because it should be able to market protection products to Groupama’s existing client base.”

Recommended

Brian Tora: Markets breathe a sigh of relief over eurozone

For more than two decades now I have been sharing my thoughts and opinions on the world of investment with Money Marketing readers. When Tim Potter, the then editor of this esteemed journal, first asked if I would contribute a regular weekly piece, I had already tucked more than a quarter of a century’s experience […]

6

FoI reveals lack of accountability over PPI misselling

The FSA has not brought any enforcement cases against individuals for the misselling of payment protection insurance in the last three years and says it has no plans to do so. London-based IFA Wexdon Financial Services submitted a Freedom of Information request to the regulator to find out whether individuals have been held to account […]

2

FSA has ‘lost sight’ of Europe due to restructure

A former member of the FSA’s retail enforcement division believes the break-up of the FSA has led to the regulator becoming less effective at lobbying Europe on financial services legislation. Law firm Pinsent Masons head of the financial services regulatory team Tim Dolan (pictured), who worked at the regulator between 2003 and 2005, believes the […]

MPs’ inquiry will scrutinise banking reforms

The Parliamentary Commission on Banking Standards will conduct pre-legislative scrutiny of the Government’s draft Banking Reform Bill. The Commission will receive the draft bill in the week starting 8 October and will begin work on it immediately, reporting back no later than 18 December. The bill is expected to appear before the House of Commons […]

Thumbnail

Neptune video: Abenomics: the impetus for Japan’s fast-track recovery?

The remarkable performance of the TOPIX over the past year has caused many sceptical equity investors to look again at the Japanese market. These returns have come despite very significant problems facing the Japanese economy. Chris Taylor, manager of the Neptune Japan Opportunities Fund, discusses these problems and whether Abenomics will be able to overcome them, enabling the market to continue to rise.

In the video, Taylor addresses the following:

• The size and speed of Japan’s unprecedented monetary policy
• Abenomics and the implications should it fail
• Corporate Japan and beneficiaries of government policy

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment