LONDON, Sept 13 (Askume) – Private equity firm Bain Capital has lined up advisers to lead a potential sale of British car and home insurer Esure, three people familiar with the matter told Askume.
Fenchurch is one of the selected advisers on the sale, two people familiar with the matter said.
Potential bidders also include Belgian insurer Ages (AGES.BR) , which has said it wants to expand into general insurance in the UK but acquired Esure’s larger rival Direct Line (DLGD.L) earlier this year, according to one person familiar with the matter and an unnamed third person.
One of the sources said eSure could be valued at at least 1 billion pounds ($1.31 billion) based on the company’s improved earnings outlook.
Bain declined to comment. Agias said he never commented on market rumors. Fenchurch did not respond to a request for comment. eSure referred a request for comment to Bain & Co.
eSure and Aegis use the same technology platform, EIS , making the target particularly attractive to Aegis, the person said. Esure’s smaller size compared with Direct Line’s £2.4 billion portfolio also made it easier for Aegis to manage, the person said .
The sale talks come at a time when the performance of car and home insurers has been hit by rising repair costs due to high inflation in recent years.
However, Esure reported 17% revenue growth in the first half of 2024 and said it had completed technology modernisation, according to results published on its website. Esure will face a trading loss of £16.7m in 2023.
eSure was founded in 2000 by former Direct Line founder Peter Wood, and its products include driving-focused brand Sheilas Wheels. In 2018 Bain CapitalTaking Esure private in a deal valued at £1.21 billion .
($1 = 0.7621 British pounds)
