Ageas acquires Kwik-Fit Insurance Services
(Thomson Reuters ONE) -
Ageas announced today the signing of an agreement with PAI Partners to acquire
Kwik-Fit Insurance Services (KFIS), a UK insurance intermediary servicing more
than 600,000 customers, for a total consideration of GBP 215 million. The
transaction is expected to be completed in the third quarter of 2010 subject to
regulatory approval.
Following on from the announcement of the partnership with Tesco Bank last year,
the acquisition of KFIS is another important step in the execution of the
successful multi-channel, multi-brand distribution strategy of Ageas in the UK.
KFIS is an insurance intermediary, which sells predominantly personal line
insurance products direct to customers, primarily through the internet,
leveraging the Kwik-Fit brand and two other brands owned by KFIS: 'The Green
Insurance Company' and 'Express Insurance'.
The acquisition will consolidate Ageas as the fourth largest personal lines
intermediary distributor in the UK. It will further strengthen its retail
operations providing additional capacity and creating a collective retail
customer base of 1.6 million, and combined 2009 pro forma revenues of GBP 189
million.
After completion of the transaction, an amount of cash is expected to be
upstreamed resulting in a net of cash investment of about GBP 185 million. The
return on investment is expected to exceed Ageas's minimum return requirement.
In addition, this transaction will increase the level of distribution profits,
which in the dynamic market, tend to be a relatively stable source of income for
successful distributors.
Announcing the transaction, Bart De Smet, CEO of Ageas said: "I welcome this
acquisition on its strategic and financial merits and as a next step in the
execution of our strategy announced last autumn. It broadens our base and will
accelerate the growth of our business in the UK, one of our core insurance
markets and one that is frequently at the forefront of new developments in the
insurance sector. I am confident too that this transaction will accelerate value
creation for all stakeholders."
Barry Smith CEO of Fortis UK added: "This is a great acquisition for our
company. It further reinforces our retail capability by adding a respected
business and their powerful brands to our portfolio. The purchase of Kwik-Fit is
part of Ageas's strategy in the UK to increase the breadth and depth of our
product offering through a multi-channel distribution approach. The
complementary strengths of Ageas and Kwik-Fit will create an exciting retail
business focused on customer needs whilst generating a greater return for our
company."
Kwik-Fit Insurance Services (KFIS) is the insurance broking division of Kwik-Fit
Holdings, the automotive and parts repair business established in 1971. It was
launched in 1995 and has grown to become one of UK's leading motor insurance
distributors. The number of staff has grown to approximately 1,000, and the
call-centre based operation handles over 10 million calls each year.
KFIS is composed of three legal entities. Kwik-Fit Insurance Services Limited is
the main entity, and accounted for 75% of revenues in 2009. It has two further
subsidiaries, Express Insurance Services Limited (20% of revenues; acquired in
June 2007) and The Green Insurance Company Limited (5% of revenues; formed in
August 2007). KFIS reported GBP 89 million of revenues in 2009.
Fortis (Insurance UK) is a leading provider of award-winning personal,
commercial and protection insurance solutions in the UK. Fortis UK distributes
both its non-life and life products through a range of channels including
brokers, IFAs, intermediaries, affinity partners and the internet, as well as
through its retail strategy via its wholly or partially-owned companies (RIAS,
Fortis Insurance Solutions, Text2Insure and InsureTECH Systems).
Insuring in the region of 7 million customers and working with a range of
partners, Fortis is recognised for delivering consistent and high-quality
customer experiences. It employs almost 3,000 people with a head office based in
Eastleigh and others in Belfast, Bournemouth, Gloucester, Haywards Heath,
London, Redditch, Reigate and Stoke-on-Trent.
Fortis in the UK will soon become 'Ageas'. The 'Ageas' brand will be introduced
in a gradual and controlled way. The whole process is expected to be complete by
the first quarter of 2011.
Ageas is an international insurance company with a heritage spanning more than
180 years. Ranked among the top 20 insurance companies in Europe, Ageas has
chosen to concentrate its business activities in Europe and Asia, which together
make up the largest share of the global insurance market. They are grouped
around four segments: Belgium, United Kingdom, Continental Europe and Asia. It
is an undisputed leader in the Belgian market for individual life and employee
benefits, as well as a leading non-life player, through AG Insurance.
Internationally Ageas has a strong presence in the UK, where it is the third
largest player in private car insurance. The company also has subsidiaries
in France, Germany, Turkey, Ukraine and Hong Kong. Ageas has a track record in
developing partnerships with strong financial institutions and key distributors
in different markets around the world and successfully operates partnerships in
Luxembourg, Italy, Portugal, China, Malaysia, India and Thailand. Ageas employs
more than 11,000 people and has annual inflows of almost EUR 16 billion.
Press contact
+32 (0)2 557 57 37
Investor Relations
Brussels
+32 (0)2 557 57 33
Utrecht
+31 (0)30 252 53 05
Ageas
Rue du Marquis 1 - 1000 Brussels - Belgium
Archimedeslaan 6 - 3584 BA Utrecht - The Netherlands
www.ageas.com
[HUG#1429190]
Pdf version press release: http://hugin.info/134212/R/1429190/376376.pdf
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Source: Ageas via Thomson Reuters ONE
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