AXA to Buy Majority Stake in Italian Insurer Prima for $571 Million

French insurer AXA has agreed to acquire a 51% stake in Italy's Prima Assicurazioni for $571 million. The deal is expected to close in the fourth quarter of 2024. AXA reported a lower-than-expected net profit in H1 despite rising business activity. The company also won a $908 million UK court ruling against Santander over protection insurance.

French insurer AXA has agreed to acquire a 51% stake in Italy's Prima Assicurazioni for $571 million. The deal, expected to close in the fourth quarter of 2024, underscores AXA's strategic pivot towards digital innovation and agile competition in the insurance sector [1].

Prima Assicurazioni, founded in 2015, operates at the intersection of AI and customer-centricity, with 4 million customers and a significant presence in Italy's retail motor insurance market. The acquisition will nearly double AXA's motor insurance business in Italy and bolster its direct distribution channel, which generated €3.5 billion in premiums for the group in 2024 across eight markets [1].

Despite rising business activity, AXA reported a lower-than-expected net profit in the first half of 2025. Total gross written premiums and other revenues increased by 7%, driven by growth across its property & casualty (P&C), life & health, and asset management segments [2]. However, the company's net income fell by 2% to €3.9 billion, mainly due to unfavorable foreign exchange movements.

Additionally, AXA has won a significant court ruling against Santander, securing a $908 million payout over the mis-selling of payment protection insurance (PPI) policies sold before 2005 by GE Capital Bank. This ruling, which centered on over 650,000 individual customer complaints, is one of Britain's costliest retail financial scandals [3].

The acquisition of Prima Assicurazioni and AXA's recent financial developments reflect a broader trend of insurtech consolidation, driven by the necessity for traditional insurers to integrate agile, tech-driven competitors. For investors, AXA's strategic move signals a pivotal inflection point, with the insurtech sector's long-term value creation hinging on scalable tech platforms, regulatory tailwinds, and customer retention [1].

References:
[1] https://www.ainvest.com/news/axa-strategic-move-acquire-prima-assicurazioni-implications-insurtech-sector-2508/
[2] https://www.insurancebusinessmag.com/us/news/breaking-news/axa-xl-insurance-and-reinsurance-units-drive-pandc-revenue-up-in-h1-544701.aspx
[3] https://bbc.bm/axa-wins-908-million-uk-court-ruling-against-santander-over-protection-insurance