£47.5 million (US$64.3 million). Under the terms of the deal, Ageas’ commercial lines operation will be transferred to AXA in July 2022, but existing back book policies will continue to be written by Ageas. Accordingly, AXA Commercial will hire about 100 staff of Ageas UK to offer continuing support and service delivery.
According to Ageas UK, which is a subsidiary of Ageas, the transaction is consistent with its aim of expanding its intermediated personal lines business. The commercial lines business of Ageas is geared for small and medium-sized businesses (SME) and schemes, which include shopkeepers, property owners, office and surgery proprietors, homeworkers, merchants, and professionals.
Ant Middle, CEO of Ageas UK, remarked on the sale. He said, “The sale of our commercial lines business is an important step in our strategy to focus on growing our heartland of intermediated personal lines business, particularly where it’s traded electronically.While we’ve modestly grown in commercial lines over the last couple of years, our focus is now elsewhere.”
This transaction excludes the back book, which will continue to be managed by Ageas UK. Both insurers have stated that they will collaborate closely to guarantee a smooth transition for workers, brokers, and consumers. According to AXA, the purchase bolsters its development strategy and commitment to commercial business clients and broker alliances, especially in the SME and schemes markets. AXA Insurance is a subsidiary of the French insurer AXA Group in the United Kingdom.
Jon Walker, chief executive officer of AXA Commercial, expressed optimism over the acquisition. He said, “This acquisition is a positive step in the growth of our commercial business and further cements our commitment to the SME and Schemes market segments. I look forward to welcoming the new members of the AXA Commercial team and the additional underwriting and operational expertise they bring”.
