AXA expands in Italian market
AXA has entered into an agreement to acquire Italian retail P&C insurer Gruppo Nobis for an upfront payment of €423m.
AXA said that Nobis is predominantly a retail P&C carrier that benefits from a well-diversified distribution network, which includes multi-tied agents and car dealer partnerships.
Nobis reported €500m of gross written premiums and net income of €35m in 2023.
Other than the upfront payment there will be a potential earn-out of up to €55m. Based on the full consideration, the price-to-earnings multiple is 11, including expected synergies. Upon closing, the transaction is expected to result in an impact of -1 point on AXA group’s Solvency II ratio, said the French insurer.
“The acquisition will further diversify our distribution channels, particularly through long-term agreements with car dealerships within the Nobis network, supporting profitable growth. By leveraging Nobis’ network and expertise, AXA Italy expects to improve its market position in P&C from #5 to #4, gaining one point of market share,” said AXA.
Patrick Cohen, CEO of AXA European markets and health, said: “This acquisition will further strengthen our position in the Italian P&C market, adding scale as well as distribution capabilities to our business. AXA Italy, together with the management team of Nobis, is very motivated to make this acquisition a success, as we are confident that the combination of Nobis with our dynamic Italian business will create both growth and innovation opportunities within our organisation.”
The transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to close in the first half of next year.
AXA Italy reported gross written premiums of €5bn and underlying earnings of €155m in 2023. The company sells its products through a direct channel, wide network of agents and bancassurance partnerships.
