AXA in ‘exclusive’ talks to buy Spanish P&C and health insurer

French re/insurer  AXA is in exclusive talks to acquire a property/casualty (P&C) and health insurer in Spain as it looks to expand in one of its core European markets.

AXA Spain has entered into exclusive negotiations with Groupe des Assurances du Crédit Mutuel (GACM SA) for the potential acquisition of its subsidiary Groupe Assurances du Crédit Mutuel España (GACM España).

Under the terms of the transaction, AXA will acquire GACM España for a cash consideration of €310 million, representing a price-to-own funds multiple of 1.0x. The estimated price-to-earning multiple is ca. 9x, after the implementation of expected capital and cost synergies, the company said.

The proposed transaction is subject to customary closing conditions, including completing the information and consultation of the relevant works councils, as well as obtaining required regulatory approvals.

The transaction is expected to close in the third quarter of 2023.

Frédéric de Courtois, group deputy chief executive officer, said: “This transaction reflects our disciplined approach towards M&A in line with our strategy, enhancing our scale in one of our core European markets, with a focus on technical lines.”

Olga Sanchez, AXA Spail CEO, added: “This acquisition will strengthen our leading position in Spain and we look forward to growing our business while ensuring a smooth transition for both policyholders and employees.”

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