French insurer AXA has agreed to acquire a 51% share of Prima, a direct insurance provider in Italy, for €500m ($578m), strengthening motor insurance operations in the country.
The transaction includes provisions for call/put options pertaining to the remaining 49% of Prima, which will be subject to an exercise price correlated with the company’s financial performance.
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As a managing general agent, Prima operates a proprietary technology platform to distribute its products via various channels including price comparison websites, its own website and a network of more than 1,500 affiliated agents.
In fiscal year 2024, Prima reported gross written premiums totalling €1.2bn within Italy. The company operates with a workforce exceeding 1,200 individuals and has established offices in key cities such as Milan, Rome, London and Madrid.
Prima CEO George Ottathycal stated: “We are delighted to become part of the Axa Group. Axa strongly believes in our strategic plan and will provide assets and expertise which will enable Prima to further unlock its potential, leveraging expertise with a leading global insurance Group.”
AXA’s direct distribution segment generated €3.5bn in premiums across multiple geographies in 2024.
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By GlobalDataThe move is expected to enhance AXA’s direct distribution capabilities in Europe, leveraging Prima’s digital infrastructure and expertise.
AXA European Markets & Health CEO Patrick Cohen said: “We are excited to announce the acquisition of Prima, which will not only significantly enhance our position in the Italian P&C [property and casualty] market but also bring capabilities to strengthen our direct business in European markets.”
The deal is set to conclude by the end of 2025, subject to standard closing conditions and regulatory consents.
Upon the deal’s completion, existing investors Blackstone, Goldman Sachs and Carlyle will relinquish their investments in Prima, with Neurone continuing to maintain its position as a key shareholder in the company.
AXA recently won a London court case against Santander, securing a £680m (€781.53m) ruling for mis-sold payment protection insurance policies.
These policies, underwritten by two companies AXA acquired from Genworth in 2015, were originally sold by a company Santander bought in 2009.
