French insurer AXA has signed a deal to acquire Irish health insurance company Laya Healthcare (Laya) in a deal valued at €650 mn.
Under the terms of the agreement, AXA will acquire Laya for a consideration of Euro 650 million, representing an expected price-to-earnings multiple of 11x, taking into account the planned re-capturing of underwriting margin currently earned by third parties.
Laya has a leading position in the Irish health market with 28% market share, serving close to 700,000 policyholders and generating 800 mn euro premiums per annum.
It operates as a Managing General Agent with a highly digitalized platform and a strong direct distribution network, which makes Laya the sole point of contact for its customers through their healthcare journey.
With this transaction, AXA affirms its ambition to grow its European franchise, by expanding its operations in a buoyant, fast-growing Health insurance market.
AXA is already present in Ireland where it benefits from a number 1 position in the P&C market.
This transaction provides a unique opportunity to strengthen our presence in one of our key European markets through the acquisition of a leading player offering a perfect cultural fit with AXA.Patrick Cohen, AXA CEO Executive Officer European Markets & Health
Through its relentless focus on innovation and customer experience, Laya will bring invaluable assets to AXA broader Health franchise, notably in terms of digitalization of the healthcare journey and provision of health-related services.
The completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to take place by the end of 2023.
by Yana Keller