Saga plc has unveiled a landmark 20-year partnership with subsidiaries of Ageas UK to oversee its motor and home insurance operations. This strategic collaboration also includes the sale of Saga’s insurance underwriting arm, Acromas Insurance Company Limited (AICL), a move that Saga describes as pivotal in optimizing its position within the insurance market.
Branded as the Affinity Partnership, this agreement brings together Saga’s trusted brand and extensive customer base with Ageas’s expertise in the UK insurance sector. The collaboration aims to grow Saga’s motor and home insurance portfolio by introducing new products and services, while Ageas will manage pricing, underwriting, claims handling, and customer service.
Saga will retain control of branding and direct marketing efforts, ensuring the brand’s identity remains intact. The partnership is slated to commence in late 2025 and is set to run for two decades, reflecting the long-term commitment of both parties.
Under the agreement, Ageas will pay Saga’s Insurance Broking division, Saga Services Limited (SSL), an upfront sum of £80 million, contingent upon meeting certain conditions. In addition, Saga may receive up to £30 million in performance-related payments tied to policy volume and profitability milestones in 2026 and 2032.
Throughout the partnership, SSL will earn commissions based on gross written premiums. Meanwhile, existing arrangements for travel and private medical insurance between SSL and other partners remain unaffected by this transaction.
As part of the deal, Ageas will acquire AICL for £65 million, with an additional £2.5 million payable after the partnership’s operational launch. The sale is anticipated to close in the second quarter of 2025, subject to regulatory approval and other customary conditions.
Mike Hazell, Saga’s Group CEO, hailed the partnership as a transformative step for Saga Insurance, combining the strength of Saga’s established brand with Ageas’s growing capabilities in the UK insurance market. Hazell emphasized the mutual benefits of the partnership, which positions both companies to deliver enhanced value to their customers.
This new chapter for Saga underscores its commitment to innovation and strategic partnerships, aiming to further solidify its standing as a leader in the insurance sector.
