15th August 2018

esure Board reaches agreement with Bain Capital over all cash offer-interim profit impacted by adverse weather but growth continues

esure Group has reported interim results and referred to the proposed acquisition by a subsidiary of funds managed by Bain Capital Private Equity (Europe).
THere was continued growth in premiums and policies in a period impacted by exceptional weather costs. Highlighjts are:
-Gross written premiums up 12% to £440.3m
-In-force policies up 8.5% to 2.449 million
-Profit before tax of £36.1m(1H 2017: £45.1m) includes an impact of £14m from adverse weather related claims costs in the Home and Motor accounts; excluding these costs profit before tax is £50.1m
-Solvency coverage) of 154%(1H 2017: 157%)
Proposed Acquisition:
-The esure Board is pleased to have reached agreement with Blue (BC) Bidco Limited, a wholly-owned subsidiary of funds managed by Bain Capital Private Equity (Europe) LLP on the terms of a recommended all cash offer for the entire issued and to be issued ordinary share capital of esure Group plc (“esure”) by Bidco (the “Proposed Acquisition”)
-Consequently, Bidco has today announced its firm intention to make an offer for esure under Rule 2.7 of the Takeover Code. A copy of the Bidco announcement is available on the esure website at www.esuregroup.com
Under the terms of the Proposed Acquisition, each esure shareholder will be entitled to receive 280p in cash for each esure share held, representing a premium of approximately 37% to the closing price per esure Share of 204 pence on 10th August(being the last business day prior to the possible offer announcement released by esure on 13th August)
In light of the Proposed Acquisition, the Board is not recommending the payment of an interim dividend (1H 2017: 4.1 pence per share)
Sir Peter Wood, chairman, comments “The first half of 2018 demonstrates that esure continues to deliver profitable growth and it is pleasing to see that we have grown our market share in motor during this period.
Alongside these results, I’m pleased to be announcing the Proposed Acquisition today, because it is a great outcome for shareholders, for the company, and for customers. Since its IPO in 2013, esure has grown to nearly 2.5 million in-force policies, delivered more than £800m of annual gross written premiums, and returned just under £300m to shareholders in dividends as well as the considerable
value delivered to shareholders through the demerger of GoCompare.”
esure Trends(50 articles)