According to information obtained by News, Saga and Ageas, a Belgian insurer that attempted to purchase Direct Line Group earlier this year, are in exclusive talks over a long-term partnership for Saga’s insurance subsidiary.
Although they issued a warning that a definitive agreement had not yet been reached, city officials stated on Tuesday night that Saga and Ageas were optimistic about reaching a settlement soon.
Ageas, which pulled out of a takeover attempt of Direct Line in March, agreed to pay Saga an upfront sum along with a number of commission payments in exchange for taking over the management of a portion of the British company’s insurance business.
On Tuesday, it remained unknown how much those payments would cost.
In order to relieve some of the strain on its balance sheet, Saga would be able to pay down debt and implement a new operating model as a result of the transaction with Ageas.
Saga announced on Tuesday afternoon that its half-year results will be postponed, even though they were supposed to be released on Wednesday.
