PARIS, FRANCE: AXA Group announced that AXA Spain has entered into exclusive negotiations with Groupe des Assurances du Crédit Mutuel (GACM SA) for the potential acquisition of its subsidiary Groupe Assurances du Crédit Mutuel España (GACM España), a predominantly P&C and Health insurer in Spain.
Under the terms of the transaction, AXA will acquire GACM España for a cash consideration1 of Euro 310 million, representing a price-to-own funds multiple of 1.0x. The estimated price-to-earnings multiple is ca. 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 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.
GACM España reported gross written premiums of Euro 0.4 billion and consolidated3 net income of Euro 16 million in 2021, mainly across Retail P&C and Health. Its consolidated3 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.
The AXA Group is a worldwide leader in insurance and asset management, with 149,000 employees serving 95 million clients in 50 countries. In 2021, IFRS revenues amounted to Euro 99.9 billion and underlying earnings to Euro 6.8 billion. AXA had Euro 1,051 billion in assets under management as of December 31, 2021.
The AXA ordinary share is listed on compartment A of Euronext Paris under the ticker symbol CS (ISN FR 0000120628 – Bloomberg: CS FP – Reuters: AXAF.PA). AXA’s American Depository Share is also quoted on the OTC QX platform under the ticker symbol AXAHY.
The AXA Group is included in the main international SRI indexes, such as Dow Jones Sustainability Index (DJSI) and FTSE4GOOD.