Esure recommends Bain buyout
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Digital insurance outfit Esure (LON:ESUR) has agreed an all cash recommended offer with a subsidiary of funds managed by Bain Capital. Under the proposed terms, shareholders would receive 280p for each share, a 37% premium over Friday’s closing price.
The company also revealed that gross written premiums during the first half of 2018 were 12% higher than in the prior year, weighing in at £440.3 million, but pre-tax profits dropped to £36.1 million due to £14 million in weather related claims.
Chairman Sir Peter Wood commented that: “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 £800 million of annual gross written premiums, and returned just under £300 million to shareholders in dividends as well as the considerable value delivered to shareholders through the demerger of GoCompare“.
Shares in the business rose by 3.91% to 277.64p (as of 12:45 BST).
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