AXA offers €310m for GACM’s Spanish subsidiary

AXA has said it will strengthen its leading position in the Spanish property and casualty market with the proposed acquisition of Groupe Assurances du Crédit Mutuel España (GACM España).

AXA confirmed it has entered exclusive negotiations with fellow French insurer Groupe des Assurances du Crédit Mutuel to buy its Spanish subsidiary for €310m.

“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 CEO of AXA.

Olga Sánchez, CEO 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.”

GACM España booked gross written premiums worth €400m in 2021 and recorded consolidated net income of €16m, which includes Agrupació AMCI, Atlantis Vida and GACM Seguros Generales.

AXA said the sale price represents nine times the estimated price-to-earnings after capital and cost synergies.

The deal is expected to close in the third quarter of 2023.