LONDON (Reuters) - Belgian insurer Ageas is in exclusive talks to set up a 20-year motor and home insurance broking partnership with British over-50s holiday group Saga, the two companies said on Friday.

Under the deal, Ageas would also buy Saga's insurance underwriting business for 67.5 million pounds ($88.1 million).

The partnership would see Ageas UK operate Saga's motor and home products broking business, which distributed products with gross written premiums of more than 479 million pounds in the year to July 31, 2024, the companies said.

Ageas UK would pay Saga 80 million pounds upfront and Saga may receive up to 30 million pounds in 2026 and up to 30 million pounds in 2032, subject to volume and profitability targets.

The deal "would create a winning combination," Saga Chief Executive Mike Hazell said in a statement.

Ageas said in a separate statement that the deal would fit with its plans to build on its non-life presence in Europe, as well as on its focus on products for an ageing population.

The deal would have a negative impact on Ageas' solvency position of 5%, it said.

"This transaction allows us to grow in a market where we already have real strength and expertise," said Ageas CEO Hans Cuyper.

Ageas abandoned attempts to take over British insurer Direct Line earlier this year.

($1 = 0.7666 pounds)