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Summary
- Generali SpA has entered into an agreement to acquire AXA Insurance SA
- The deal will contribute towards strengthening Generali’s strategic position in Greece
Assicurazioni Generali SpA has signed an agreement on 31 December to acquire the Greek subsidiary of AXA SA, AXA Insurance SA. The total consideration of the deal amounts to 165 million euros ($202.9 million), which is 12.2 times the company’s earnings of 2019. The transaction is projected to be finalised by the end of Q2 2021.
Italian insurance giant Generali said that an existing distribution agreement between AXA Insurance, popularly known as AXA Greece, and Alpha Bank, which was supposed to come to an end in March 2027, was also renegotiated. With the deal, an extension of 20 years has been agreed upon.
According to the insurer, the agreement involves future payments from Greek Generali companies to Alpha bank, the amount of which will depend on the performance of the partnership.
How will it benefit Generali
The acquisition of AXA Insurance is in accord with Generali’s strategy to strengthen its leadership in Europe and to gain further exposure to non-life and health business. Further, the agreement will allow Generali to capture the top 3 positions in the non-life and health segments along with securing a leading role in the Greek insurance market. Generali’s presence in the life segment will be strengthened as well.
AXA Greece’s acquisition and the extension of the distribution agreement is also in line with Generali’s capital redeployment strategy in disciplined M&A to support profitable growth. Generali’s ambition to boost non-life sales by enhancing its bancassurance channel will be supported by the renewed partnership with Alpha Bank.
Generali’s operations in Greece
Generali is the sixth largest insurance company of Greece, which has been actively operating since 1886. Having a market share of 5.3 per cent, Generali offers comprehensive solutions in the non-life, health and life insurance sectors. The company is known to serve more than 305,000 clients across Greece.
The extensive sales network of Generali consists of almost 3,000 intermediaries and insurance agents across the nation. The Greece division of Generali comprises 268 highly skilled employees. The total gross premiums written posted by the company in 2019 was worth roughly 218 million euros.
In a separate statement, AXA Insurance said that the agreement would focus on its business segment of Life & Savings and Property & Casualty in Greece.
About AXA Insurance SA
AXA Greece is a well-positioned composite insurance company in Greece, securing a rank in the top 10 profitable insurance companies. The company has a strong market presence in the non-life, health and life insurance segment.
The distribution of AXA Greece’s products takes place mainly through Alpha Bank through a network of more than 600 agents. AXA Greece’s total gross insurance premiums were reported to be approximately 168 million euros in 2019.
One of the leading banks in Greece, Alpha Bank has a network of 347 bank branches, serving around 3.1 million customers in Greece.
