AXA to Acquire Spanish P/C Insurer GACM España for €310M

AXA announced that AXA Spain has entered into exclusive negotiations to acquire Groupe Assurances du Crédit Mutuel España (GACM España), a Spanish property/casualty and health insurer.

Under the terms of the transaction, AXA will acquire GACM España from Groupe des Assurances du Crédit Mutuel (GACM SA) for a cash consideration of €310 million ($303.3 million), representing a price-to-own funds multiple of 1.0 times GACM España’s book value.

The estimated price-to-earnings multiple is approximately 9 times, after the implementation of expected capital and cost synergies, said AXA.

“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,” said Frédéric de Courtois, deputy chief executive officer of AXA.

“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,” added Olga Sánchez, chief executive officer of AXA Spain.

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.

About Groupe Assurances du Crédit Mutuel España

GACM España reported gross written premiums of €400 million ($391.4 million) and consolidated net income of €16 million in 2021, mainly across Retail P&C and Health. Its consolidated Solvency II ratio was 237% on a Standard Formula basis at year-end 2021.The company sells its products through a wide distribution network of agents and partners.

Source: AXA

Topics Mergers & Acquisitions Carriers Property Casualty AXA XL