AXA Spain has entered negotiations with Groupe des Assurance due Crédit Mutuel (GACM) to acquire the company in a bid to strengthen its property & casualty (P&C) and health presence in Spain.
Under the terms of the transaction, AXA will acquire GACM España for €310m.
In 2021, GACM España reported gross written premiums of €0.4bn and consolidated net income of €16m, mainly across retail P&C and health.
Frédéric de Courtois, deputy chief executive officer of AXA, 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 Sánchez, chief executive officer of AXA Spain, 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.”
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.
AXA recently launched Moja, a digital-only insurance brand for motor insurance customers which aims to “shake up the insurance market.”
Also earlier this year, AXA UK launched five new home insurance products across its AXA and Swiftcover brands in a bid to meet customer demands for greater flexibility and choice.
AXA said the products will provide greater choice around what items they want to include in their cover both in and outside the home.
Additionally, cover limits will be staggered to create tiered products, meaning customers will be able to choose from policies with two to five star ratings as opposed to just four or five stars currently.
The new products will initially launch to customers direct from AXA UK and through Compare the Market.
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