AXA Agrees to Purchase Laya Healthcare From AIG for €650 Million

AXA announced it has entered into an agreement to acquire Laya Healthcare Ltd. from Corebridge Financial Inc., a subsidiary of AIG.

Laya has a leading position in the Irish health market with approximately a 28% market share, serving close to 700,000 policyholders and generating €800 million (US$877.2 million) premiums per annum (as of financial year 2022), AXA said in a statement.

Laya operates as a managing general agent with a digitalized platform and a strong direct distribution network, which makes Laya the sole point of contact for its customers through their healthcare journey, the Paris-based insurer said.

Under the terms of the agreement, AXA will acquire Laya for a consideration of €650 million (US$712.7 million), representing an expected price-to-earnings multiple of approximately 11x, taking into account the planned recapturing of underwriting margin currently earned by third parties, AXA explained.

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.

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 one 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,” commented Patrick Cohen, AXA’s chief executive officer, European Markets & Health.

Laya will bring invaluable assets to AXA’s broader health franchise, “notably in terms of digitalization of the healthcare journey and provision of health-related services,” Cohen continued.

Source: AXA

Topics AXA XL AIG