’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,’ says chief executive

Axa has entered into an agreement to acquire a majority stake in Prima, a direct insurance player in Italy with €1.2bn of premiums in 2024.

Headquartered in Milan, Prima operates as an MGA and employs over 1,100 professionals, of which more than 400 are software developers, IT engineers and data scientists.

Prima has also recently launched direct operations in the UK and Spain.

Under the terms of the agreement, Axa will acquire 51% of the company for a consideration of €500m. 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%.

Axa expects the acquisition of Prima to further enhance its direct distribution capabilities in Europe.

“The direct distribution channel presents a significant opportunity within P&C retail, catering to a growing demographic of digitally savvy as well as price-sensitive customers and supplements the traditional distribution channels by reaching complementary customer profiles,” Axa said.

Expanding reach

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 2025.

Patrick Cohen, chief executive of Axa European markets and health, said: “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.”

George Ottathycal, chief executive at Prima, added: “This is an important milestone which marks a significant recognition of the work carried out so far by the entire Prima team and of the quality of what Prima has built over its first 10 years of life.

“We are delighted to become part of the Axa Group. Axa strongly believes in our strategic plan and will provide assets and expertise which will enable Prima to further unlock its potential, leveraging expertise with a leading global insurance group.”

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