Source: Coverager

Under the terms of the agreement, AXA will acquire 51% of the company for a consideration of €500 million. Call/put options with an exercise price tied to Prima’s earnings have been granted respectively to AXA and minority stakeholders for the remaining 49%. Taking into account the capital required to back the planned re-capture of premiums and underwriting margin currently earned by third party insurance carriers, the total consideration represents an expected price-to-earnings multiple of 11x.

Since its launch in 2015, Prima has “emerged as the leader” in the direct distribution channel in Italy, achieving a top position with 10% overall market share in retail motor. The company operates as a managing general agent and employs over 1,100 professionals, of which more than 400 are software developers, IT engineers, and data scientists. Prima has recently launched direct operations in the UK and Spain.

The acquisition of Prima is expected to strengthen AXA’s position in Italy by almost doubling the size of its motor business. In addition, Prima will bolster AXA’s position in the direct distribution channel which generated €3.5 billion in premiums for the Group in 2024, across eight geographies.

“We are excited to announce the acquisition of Prima, which will not only significantly enhance our position in the Italian P&C market but also bring capabilities to strengthen our direct business in European Markets. With Prima, we are acquiring a best-in-class direct player with a cutting-edge platform and a unique set of skills in serving customers. Together with the Prima team, we are confident we can further scale our direct business, expanding our market reach to customer segments that naturally complement those served by our traditional distribution channels.” – Patrick Cohen, CEO of AXA European Markets & Health.

Read the full article: https://coverager.com/axa-announces-the-acquisition-of-prima/