Saga (LON: SAGA) shares rallied more than 10% on Monday after the company announced a strategic partnership with Ageas and the sale of its underwriting business.
The stock is currently trading around the 136p mark, its highest level since mid-October.
The 20-year Affinity Partnership will see Ageas take on price comparison website distribution, pricing, underwriting, claims, and customer service for Saga's motor and home insurance products.
Saga will maintain its responsibility for brand and direct marketing.
The companies said the partnership aims to “deliver best-in-class insurance services” to Saga customers by combining the strength of the Saga brand with Ageas's extensive UK insurance operations.
The deal is expected to commence in Q4 2025, subject to certain conditions.
In addition, Ageas UK will acquire Saga's Insurance Underwriting business, Acromas Insurance Company Limited (AICL), for a base consideration of £65 million, with an additional consideration of £2.5m payable following once the partnership begins.
Completion of the sale is expected in Q2 2025, subject to regulatory approvals.
Saga's Group Chief Executive Officer, Mike Hazell, described the partnership as an “exciting next step” for Saga Insurance, leveraging the strength of the Saga brand and customer base with Ageas's expertise.
Ant Middle, CEO of Ageas UK, commented: “This agreement marks an important milestone in the development of Ageas UK and we are excited about the opportunities this partnership brings.”
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