Belgian insurer Ageas has ended its pursuit for Direct Line Insurance coverage Group, following the rejection of two earlier buyout proposals. 

Ageas initially made a £3.1bn buyout bid for Direct Line in January 2024, which was turned down by the UK insurer for considerably undervaluing the corporate.  

The supply comprised 100p in money and one new Ageas share for each 25.24047 Direct Line shares. 

In March, Ageas elevated its bid to £3.17bn, providing 120p in money and one new Ageas share for each 28.41107 Direct Line Group shares, equating to 233p per Direct Line share.  

Direct Line dismissed this second proposal too, calling it “extremely opportunistic” and “unattractive”. 

All through the negotiation course of, Ageas mentioned it sought to have interaction with Direct Line’s Board however was unable to determine additional parts from publicly obtainable info that might warrant a considerable revision of the supply phrases. 

Ageas famous that it stays assured within the potential of the UK private traces sector and the position of Ageas UK available in the market. 

Now, Ageas UK will proceed to concentrate on private traces insurance coverage, working intently with its distribution companions. 

Ageas CEO Hans De Cuyper mentioned: “We had hoped to succeed in settlement on a collectively really useful agency supply along with the Direct Line Board. Nevertheless, I’m satisfied that given the circumstances we took the appropriate choice to not make a suggestion, staying true to who we’re and what we stand for by way of sustaining a pleasant strategy and respecting our monetary self-discipline.” 

In associated information, French banking big BNP Paribas is reportedly concerned with buying Fosun Worldwide’s stake in Ageas.  

The deal would contain Fosun’s practically 10% stake in Ageas, which had a market worth of round €750m as of 14 March, together with shares and derivatives. 

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