French insurance major AXA has reached an agreement to acquire Gruppo Nobis (Nobis) to expand its Italian operations.
According to the transaction terms, the initial payment for the acquisition will be €423m ($539.8m), with additional earn-out potential of up to €55m.
The earn-out payments depend on meeting revenue targets during the five-year period following the completion of the transaction.
Nobis is mainly a retail property and casualty (P&C) insurance company, with a diverse distribution channel that includes both multi-tied agents and partnerships with car dealers.
In 2023, Nobis reported net income of €35m and €500m in gross written premium.
AXA anticipates that the acquisition will enhance its distribution channels by establishing long-term partnerships with car dealerships that are part of the Nobis network, thereby fostering profitable growth.
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By GlobalDataBuilding on Nobis’ network and expertise, AXA Italy aims to enhance its position in the P&C market from fifth position to fourth, gaining approximately one percentage point of market share.
In 2023, AXA Italy reported gross written premium of €5bn and underlying earnings of €155m, primarily from retail P&C and life and savings.
The company distributes its products via a direct channel, network of agents and bancassurance partnerships.
AXA European markets & health CEO Patrick Cohen said: “This acquisition will further strengthen our position in the Italian P&C market, adding scale as well as distribution capabilities to our business.
“AXA Italy, together with the management team of Nobis, is very motivated to make this acquisition a success, as we are confident that the combination of Nobis with our dynamic Italian business will create both growth and innovation opportunities within our organisation.”
The deal, which is subject to customary closing conditions, is expected to close before the first half of 2025.
Last month, AXA, together with Italy’s major insurer Generali, agreed to support the Insurance Development Forum’s Infrastructure Resilience Development Blueprint.
This initiative aims to guide investments from the insurance sector into infrastructure projects that enhance the resilience of emerging and developing economies against climate change and natural disasters.
The investments will focus on sectors such as renewable energy, water and wastewater management, education, healthcare, telecommunications and digital infrastructure.
