Saga teams up with Ageas in new deal that will last 20 years

Saga, the specialist in services for the over-50s, has entered into a strategic 20-year alliance with Ageas, the Belgian insurance heavyweight. Under the agreement, Ageas' UK branch will assume control of Saga's comparison site operations, including pricing, claims handling, and customer service.

However, Saga will retain ownership of its brand and direct marketing efforts, as reported by City AM.

As part of the arrangement, Saga is set to receive an initial £80 million, contingent on the publication of its half-yearly accounts up to 31 July 2025, which must be free from "material uncertainty or an auditor qualification," and subject to the renewal or refinancing of a corporate bond due in July 2026. Additionally, the insurance broker could earn up to £30 million in both 2026 and 2032 if certain policy volume and profitability thresholds are met, along with a commission tied to premium percentages.

Moreover, Ageas is poised to purchase Saga's underwriting business for £67.5 million, with the transaction expected to finalise in the next year's second quarter. It's important to note that Saga's existing travel insurance collaboration with Collison and its private medical insurance agreement with Bupa will remain unaffected by this new partnership.

The potential deal between Saga and Ageas first came to light in October following Ageas' unsuccessful attempts to acquire Direct Line. Prior to this agreement, Saga had engaged in negotiations with Open, an Australian company, regarding the sale of its insurance division, Acromas.

However, these talks disintegrated in March 2023.