Payday for Esure founder as deal agreed

The board of insurance group Esure has agreed to a £1.2 billion takeover by private equity firm Bain Capital in a move that will trigger a bumper payout for founder and chairman Sir Peter Wood.

The insurer will recommend Bain’s formal 280p-a-share offer to investors, which represents a 37 per cent premium to Friday’s closing share price.

The firm’s largest backers, Wood and Toscafund, which hold about 31 per cent and 17 per cent of Esure respectively, have come out in support of the takeover deal.

A total of 75 per cent of shareholders must vote to approve the acquisition, which would see the insurer taken private and de-listed from the London Stock Exchange.

Wood stands to pocket some £370 million from the sale of Esure, which has a major customer support operation in Glasgow employing hundreds of people.

He said: “As a private company and with Bain Capital’s backing, Esure will be able to invest behind the innovation required to fully realise the opportunities in this market.”

The group also announced results for the first half of the year, with profits taking a hit due to the Beast from the East cold snap in March.

The firm posted a pre-tax profit of £36.1m for the six months to 30 June, down from £45.1m a year earlier. Esure blamed the drop on a hit from cold weather in March and flash flooding in May.

It added: “The group’s underwriting performance was significantly impacted by the adverse weather events in the first half of the year, notably the Beast from the East.” 0 Sir Peter Wood is chair of the insurance business