AXA 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 consideration* 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.
Frederic de Courtois, GROUP DEPUTY CHIEF EXECUTIVE OFFICER (“DIRECTEUR GÉNÉRAL ADJOINT”) IN CHARGE OF FINANCE, RISK MANAGEMENT, STRATEGY, CEDED REINSURANCE AND OPERATIONS, commented: "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 Sanchez, AXA SPAIN CEO, commented: "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.
* 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