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HomeInsuranceAssurances du Crédit Mutuel will sell GACM España to Axa

Assurances du Crédit Mutuel will sell GACM España to Axa

Written October 20, 2022, 10:33 amUpdated on October 20, 2022 at 10:48 am

“This is the group’s first significant acquisition since the purchase of XL in 2019 », for 15 billion dollars. Here’s how Axa’s Deputy CEO, Frédéric de Courtois, explained Echoes (parent company of Capital Finance) the planned takeover of GACM España, revealed on 18 October.

Axa has just signed an exclusive agreement with Les Assurances du Crédit Mutuel to buy 100% of this Iberian structure, which is particularly present in the areas of personal injury insurance and health. The operation is to be signed at a value (in cash) of €310 million, representing one time the eligible equity capital under Solvency II. “The earnings price multiple is estimated at approximately 9 times, taking into account the expected realization of capital and overhead synergies”, explains Axa. It should be noted that an additional price of a maximum amount of 20 million euros can be added – this corresponds to the amount that Axa will have to pay to distribute its products for a decade in the network of TargoBank, a bank branch of Crédit Mutuel.

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