AXA to Acquire Nobis Group in New Strategic Expansion Move

On August 1st, 2024, AXA announced a significant development in its expansion strategy. The global insurance leader has agreed to acquire Gruppo Nobis (Nobis), a prominent player in the Italian retail property and casualty (P&C) insurance market. This move marks a crucial step in AXA’s efforts to strengthen its position in Italy’s competitive insurance sector.

Details of the Acquisition

The acquisition deal involves an upfront consideration of €423 million, with a potential additional earn-out of up to €55 million. Nobis, which reported €500 million in gross written premiums and a net income of €35 million for 2023, operates through a diversified distribution network, including multi-tied agents and partnerships with car dealerships. This extensive network will provide AXA Italy with enhanced distribution capabilities and market reach.

Patrick Cohen, CEO of AXA European Markets and Health, commented: “This acquisition will further strengthen our position in the Italian P&C market, adding scale and distribution capabilities to our business. AXA Italy, together with the management team of Nobis, is very motivated to make this acquisition a success. We are confident that the combination of Nobis with our dynamic Italian business will create both growth and innovation opportunities within our organization.”

Impact on AXA’s Market Position

Following the acquisition, AXA Italy anticipates moving from the 5th to the 4th position in the Italian P&C market, gaining approximately one percentage point in market share. The integration of Nobis is expected to bolster AXA’s distribution network and support profitable growth. However, it is projected to slightly reduce 1 point on AXA Group’s Solvency II ratio.

Regulatory Approval and Expected Completion

The transaction is subject to customary closing conditions, including regulatory approvals. AXA anticipates finalising the deal by the end of the first half of 2025. This acquisition represents a strategic effort by AXA to leverage Nobis’ established network and enhance its competitive edge in the Italian insurance market.

Conclusion

AXA’s acquisition of the Nobis Group is poised to impact its position within the Italian insurance market significantly. By integrating Nobis’ extensive distribution network, AXA aims to foster growth and innovation, solidifying its market presence in Italy. As the deal progresses through regulatory approval, it marks a notable advancement in AXA’s global expansion strategy.