AXA announced today that it has entered into an agreement to acquire Laya Healthcare Limited (“Laya”) from Corebridge Financial Inc., a subsidiary of AIG.
Laya has a leading position in the Irish health market with ca. 28% market share, serving close to 700,000 policyholders and generating ca. Euro 800 million premiums per annum. It operates as a Managing General Agent with a highly digitalized platform and a strong direct distribution network, which makes Laya the sole point of contact for its customers through their healthcare journey.
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 1 position in the P&C market.
Under the terms of the agreement, AXA will acquire Laya for a consideration of Euro 650 million, representing an expected price-to-earnings multiple of ca. 11x, taking into account the planned re-capturing of underwriting margin currently earned by third parties. The completion of the transaction is expected to result in an impact of -3 points on AXA Group’s Solvency II ratio.
“We are very pleased to join forces with Laya Healthcare, a company recognized in Ireland for its unwavering customer service, its strong brand, and its technical expertise. 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. Through its relentless focus on innovation and customer experience, Laya will bring invaluable assets to our broader Health franchise, notably in terms of digitalization of the healthcare journey and provision of health-related services”, said Patrick Cohen, Chief Executive Officer of AXA Europe and Health.
“This transaction further diversifies our company, and I am confident that we will see our business thrive with the addition of Laya. We look forward to working together to develop innovative products, grow further our tech & data capabilities and create value for the benefit of our clients and all our stakeholders. I would like to welcome Laya’s team members whose vision and hard work over the past 20 years have made it a very successful company”, added Marguerite Brosnan, Chief Executive Officer of AXA Ireland.
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.