The deal, set to be closed in the second half of 2025, will allow Ageas's UK division to widen its target customer demographics and grow its revenues to 3.25 billion pounds by 2028, the Belgian insurance group said on Monday.
Ageas also expects to improve its digital capabilities within the motor and home insurance segments, to better compete with market leaders Aviva (AV.L) and Direct Line (DLGD.L) in the price-driven British market.
Reuters reported in September that Bain Capital had hired advisers to sell esure and that Ageas was planning to bid for it last month.
Ageas last year pursued Direct Line before it was taken over by Aviva.
The integration period to fold esure into Ageas UK is expected to be completed by 2028. Until then, Ageas will focus on consolidation rather than actively seeking further merger opportunities in Britain.
"We have done two acquisitions in a very short time. So you will have to give us some time to digest and to integrate that," Ageas CEO Hans De Cuyper told Reuters.
The insurer is still readying itself for potential deals, should an opportunity arise that could help it achieve market leading positions.
"We plan to issue 1 billion euro ($1.14 billion) of own funds instruments ... to keep the firepower," the CEO said.
The latest acquisition comes amidst a fallout from tariffs imposed by U.S. President Donald Trump on numerous trade partners. But De Cuyper said the insurance sector is less impacted by those due to its non-reliance on trade.
"We have a British pound currency risk, but there are hedging solutions that can help you to cover that," he added.
($1 = 0.7632 pounds)
($1 = 0.8778 euros)
