Ageas UK, a provider of non-life and life products, has acquired over 50s specialist Castle Cover for £52.8m, increasing its customer base to nearly eight million.
Within Ageas UK’s retail operation, the purchase will create a combined retail customer base of two million and builds on the significant presence it already has in the market through over 50s specialist RIAS.
The acquisition is likely to consolidate Ageas’ position as the fourth largest personal lines broker in the UK.
The transaction will bring the Ageas total retail revenues to approximately to £200m, with Castle Cover’s nearly 280,000 customer policies and reported revenue of £22m in 2010.
Castle Cover retain its brand name and will become a subsidiary of Ageas UK, which will now employ more than 4,500 people in the UK.
Janet Connor will be managing director of both RIAS and Castle Cover.
Ageas UK chief executive Barry Smith said the acquisition of Castle Cover gives Ageas an even stronger over 50s market presence, adding an established brand to the retail operation and enhancing the proven knowledge in this growing insurance market.
"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," Smith said.
Castle Cover marketing director Andy Cole said that 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.