AXA, Europe’s second-biggest insurer behind Germany’s Allianz, announced on Wednesday that it had completed the acquisition of Groupe Assurances du Crédit Mutuel España (GACM España).
Under the terms of the transaction, AXA has acquired GACM España for a total cash consideration of €310 million ($346.2 million), in line with the announcement made upon signing of the agreement in October 2022.
The agreed-upon deal reflects price-to-own funds multiple of 1x.
The insurer has said earlier that the estimated price-to-earnings multiple is ca. 9x, following the implementation of expected capital and cost synergies.
Frédéric de Courtois, Deputy Chief Executive Officer of AXA, had commented during the negotiation, by saying: “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.”
AXA is reportedly set to become the fourth insurance group in Spain with a turnover of over €3000 million.
This deal will add three other medical centres to AXA Spain’s portfolio that will join the current Hospital Mompía in Cantabria and the two Pensa centres in Barcelona, La Vanguardia reported.
GACM España is predominantly a property and casualty and health insurance provider in Spain. In 2022, it reported gross written premiums of €0.4 billion, mainly across Retail P&C and Health. Its consolidated solvency II ratio was 272 percent on a Standard Formula basis at the end of 2022 and its eligible own funds were €0.3 billion. The Spanish company sells its products through a wide distribution network of agents and partners.
