(PRESS RELEASE) PARIS, 18-Oct-2022 — /EuropaWire/ — AXA (EPA: CS), a French multinational insurance and asset management firm, has announced its intention to acquire a Property and Casualty (P&C) and Health insurer in Spain for EUR 310 million. The transaction will be carried out by its Spanish subsidiary AXA Spain and the acquired entity is Groupe Assurances du Crédit Mutuel España (GACM España), a subsidiary of Groupe des Assurances du Crédit Mutuel (GACM SA), a French insurer and part of Banque Fédérative du Crédit Mutuel Société anonyme. The cash consideration of EUR 310 million for the transaction represents a price-to-own funds multiple of 1.0x while the estimated price-to-earnings multiple is circa 9x, after the implementation of expected capital and cost synergies.
“This transaction reflects our disciplined approach towards M&A in line with our strategy, enhancing our s cale in one of our core European markets, with a focus on technical lines,” commented Frédéric De Courtois, Group Deputy Chief Executive Officer (“Directeur General Adjoint”) in charge of Finance, Risk Management, Strategy, Ceded Reinsurance and Operations.
“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,” said Olga Sanchez, AXA Spain CEO.
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.
* Cash consideration subject to potential contractual adjustment
** Own Funds is the surplus derived from the Solvency II balance sheet
*** Consolidated figures for GACM España which notably includes Agrupació AMCI, Atlantis Vida and GACM Seguros Generales
**** Based on 2021 net income which (i) excludes the earnings generated by the credit insurance business that is out of the scope of this transaction and (ii) is adjusted for expected cost synergies
INVESTOR RELATIONS TEAM
+33 1 40 75 48 42
AXA MEDIA RELATIONS