AXA announced that it has entered into an agreement with Generali to sell its insurance operations in Greece. Under the terms of the agreement, AXA will sell its Life & Savings and Property & Casualty businesses in Greece for a total cash consideration of Euro 165 million ($203 million), representing an implied 12.2x FY 2019 P/E multiple.
This transaction represents a continuation of AXA’s simplification journey, in line with the Group’s strategy.
Completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to be finalized by the end of 2Q 2021.
Generali has also extended an existing distribution agreement between AXA and Alpha Bank AE by 20 years beyond its current expiration date of March 2027.
Generali Chief Executive Officer Philippe Donnet said in July that the current economic crisis also presented new opportunities. In November, he said Generali had as much as 2.5 billion euros earmarked for acquisitions and would consider mid-size deals in the insurance and asset management sectors.
About AXA in Greece
AXA Greece was ranked 7th in the non-life insurance market and 8th in the life insurance market* in 2019, offering a broad suite of products to more than 600,000 customers. The company has 249 employees and distributes its products through a diversified distribution mix consisting of an exclusive bancassurance partnership with Alpha Bank, agents, brokers as well as direct distribution channels.
The gross revenues and underlying earnings of AXA’s operations in Greece recorded in the Group’s FY19 consolidated financial statements were Euro 168 million and Euro 15 million respectively.
