(Alliance News) - Shares in Direct Line Insurance Group PLC jumped on Wednesday after Bloomberg reported that it had rejected a bid approach from Belgian insurer Ageas SA.
Shares in Direct Line, the Bromley, England-based motor and home insurer, soared 16% to 188.84 pence each in London on Wednesday.
Industry peer Admiral Group PLC rose 2.1% to 2,632.00p. Shares in Ageas, meanwhile, eased 2.2% to EUR38.47 in Brussels on Wednesday.
Bloomberg said Ageas had made an approach to buy Direct Line in recent weeks but this had been rejected, citing people familiar with the matter.
https://www.bloomberg.com/news/articles/2024-02-28/uk-insurer-direct-line-said-to-reject-ageas-takeover-approach
Ageas has been working with advisers on the potential acquisition, Bloomberg added.
Direct Line, which has a market value of around GBP2.40 billion, was created through an initial public offering from Royal Bank Of Scotland’s insurance division in 2012.
Former Aviva PLC UK boss Adam Winslow will officially join the company as chief executive officer on March 1.
He will be replacing CEO Penny James, who agreed to step down immediately in January last year after the company skipped its final dividend due to a big increase in weather related claims causing a loss on underwriting.
By Jeremy Cutler, Alliance News reporter
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Direct Line (DLG)
Admiral (ADM)
