Italian insurer Generali has agreed to acquire AXA’s operations in Greece. It will buy AXA’s Greek subsidiary AXA Insurance for a consideration of €165 million, a multiple of 12.2 times 2019 earnings.
Generali has also renegotiated the distribution agreement currently in place between AXA Greece and Alpha Bank expiring in March 2027 by extending it for 20 years from the closing of the acquisition, which entails certain future payments by the Greek Generali companies to Alpha Bank, the amount of which will vary based on the performance of the partnership.
Generali said the acquisition is in line with its strategy of strengthening its leadership in Europe and gaining further exposure to non-life and health business, thus allowing Generali to secure a leading role in the Greek insurance market with top-3 positions in the non-life and health segments, while also strengthening its presence in the life segment.
In 2019, AXA Greece posted total gross insurance premiums of approximately €168 million. AXA Greece distributes its products mainly through Alpha Bank and a network of more than 600 agents. Alpha Bank is a leading bank in Greece, serving approximately 3.1 million customers in Greece through a network of 347 bank branches.
Jaime Anchústegui Melgarejo, CEO International of Generali, said: “This acquisition is fully aligned with the ‘Generali 2021’ strategy, which aims to strengthen our leadership in Europe. With the purchase of AXA Greece and the exclusive long-term distribution agreement with Alpha Bank, Generali decidedly strengthens its position in the local market, becoming the second largest group in the non-life and the third in the health sector in Greece. The transaction will enable us to optimize our strategic positioning in the country, allowing for a multi-channel, dynamic business and securing valuable, significant economies of scale for a more effective and efficient overall operation.”
Vassilios Psaltis, CEO of Alpha Bank, said: “The new agreement with Generali is testament to the focus of Alpha Bank on improving its competitive position in the bancassurance space. Setting in place and nurturing strategic partnerships with global market players has been a core strength of Alpha Bank for the past two decades. We welcome Generali and look forward to a mutually beneficial partnership.”
AXA said the transaction represents a continuation of its “simplification journey”, in line with the Group’s strategy.
Generali, Mergers & Acquisitions, Insurance, Reinsurance, Jaime Anchústegui Melgarejo, Europe