Sale would allow Ageas to fully focus on its core non-life UK business

Ageas has agreed to sell its life insurance arm Ageas Protect to AIG.

The deal, expected to be completed by the end of the year, is subject to regulatory approval.

The company said the sale would leave Ageas to continue to focus on developing its core non-life activities in the UK.

Ageas Protect reported a 20.2% increase to £52.5m in total gross written premiums in the first half of 2014, compared with £43.7 million in the first half of last year.

The company also posted post-tax profits of £1m, when compared with a loss of £1.3m in the same period last year.

Ageas said the growth was driven by the company’s approach to underwriting and technology, high levels of service and product innovation.

Announcing the transaction, Ageas UK chief executive Andy Watson said: “Ageas Protect has developed into a great company, with a strong reputation for service and innovative products.

“Much of that is down to the incredible hard work and vision of the whole Ageas Protect team, creating a well-respected proposition in the UK individual protection market.

“It was a tough decision for us, but, ultimately, our main focus in the UK is in developing our businesses in the non-life market where we have considerable scale and hold significant market positions. We know that Ageas Protect employees are going to a good home where they can further develop the business,” he added.