AXA to acquire Italian MGA Prima

French insurer AXA has agreed to acquire Milan-headquartered Prima, an Italian direct insurance player acting as a managing general agent (MGA). The transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to close by the end of 2025.

Since its launch in 2015, Prima emerged as the leader in the direct distribution channel in Italy, achieving a top position with a roughly 10% overall market share in retail motor. The firm reported premiums of €1.2 billion in 2024.

Under the terms of the agreement, AXA will acquire 51% of the company for a consideration of €0.5 billion. This acquisition aims to strengthen AXA’s position in Italy by almost doubling the size of its motor business.

Prima will also bolster AXA’s position in the direct distribution channel, which generated €3.5 billion in premiums for the group in 2024, across eight geographies, with leading positions in four.

AXA believes that the direct distribution channel presents a significant opportunity within P&C Retail.

Prima leverages its proprietary technology platform and strong data analytics, along with its pricing capabilities, to deliver a combined ratio of 90% in 2024.

AXA confirmed that call/put options with an exercise price tied to Prima’s earnings have been granted respectively to AXA and minority stakeholders for the remaining 49%.

Taking into account the capital required to back the planned recapture of premiums and underwriting margin currently earned by third-party insurance carriers, the total consideration represents an expected price-to-earnings multiple of ca. 11x, explains AXA.

This includes the recapture of the business currently written by third-party insurance carriers, the transaction is expected to result in an impact of -6 points on AXA Group’s Solvency II ratio.

Patrick Cohen, Chief Executive Officer, AXA European Markets & Health, commented, “We are excited to announce the acquisition of Prima, which will not only significantly enhance our position in the Italian P&C market but also bring capabilities to strengthen our direct business in European Markets. With Prima, we are acquiring a best-in-class direct player with a cutting-edge platform and a unique set of skills in serving customers. Together with the Prima team, we are confident we can further scale our direct business, expanding our market reach to customer segments that naturally complement those served by our traditional distribution channels.”

This morning, AXA reported a of 5% to €4.5 billion and 7% growth in gross written premium (GWP) and other revenues to €64.3 billion in the first half of 2025.