Bain Capital Bids $1.5 Billion for Insurer ESure as Deals Soar

(Bloomberg) -- ESure Group Plc has received an unsolicited offer of about 1.17 billion pounds ($1.5 billion) from Bain Capital Private Equity LP as private equity firms seek to consolidate the insurance industry.

The offer of about 280 pence a share in cash is a 37 percent premium to the closing price on Friday, the U.K. insurer said in a statement on Monday. ESure’s board of directors expects to recommend the bid. The shares rose as much as 33 percent, the most ever, on Monday.

Private equity firms are increasingly getting involved in insurance takeover deals in the region, wagering their investing expertise can help lift returns from managing premium income. Firms including Apollo Global Management LLC have already been buying up similar insurers in the U.S., while Cinven is in exclusive talks to acquire a retirement products unit of Axa SA, having already acquired Guardian Financial Services in the U.K., Eurovita in Italy, and Viridium in Germany.

ESure provides insurance services for cars, vans, travel, motorbikes and pets.

To contact the reporter on this story: Neil Callanan in London at ncallanan@bloomberg.net

To contact the editor responsible for this story: Sree Vidya Bhaktavatsalam at sbhaktavatsa@bloomberg.net

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