Axa strengthens its presence in Italy with l51% acquisition di First Insurance, a leading operator in direct insurance distribution. The operation, worth 500 million euro, also includes call and put options for the remaining 49%, linked to the Italian company's future profits. The French giant's goal is double your business in car insurance in Italy and consolidate its position in digital channels, which are increasingly central in a market that rewards technological efficiency and a direct approach to the customer.
Founded in 2015, Prima has quickly become a point of reference in the sector, with 1,2 billion euros in premiums collected in 2024 and a 10% stake in motor retail. AXA aims to leverage the Italian company's technological platform and the team's know-how to strengthen its direct distribution capabilities in Europe, where in 2024 the channel has already generated 3,5 billion in premiums across eight markets.
“With Prima, we are acquiring a leading direct operator, with a cutting-edge platform and distinctive capabilities in serving clients,” said Patrick Cohen, CEO of AXA European Markets & Health. “This acquisition confirms that Italy is a strategic market for AXA, in which we will continue to invest.”
The closing of the operation is expected by the end of 2025, subject to regulatory approval. The estimated impact on the group's Solvency II ratio is -6 percentage points.
The financial results are mixed: net profit down, revenue up.
The acquisition announcement comes in parallel with the presentation of its half-yearly accounts. AXA closed the first half of 2025 with a net profit down 2% to 3,92 billion euros, While Revenues rose 7% to $64,25 billionOperating profit also increased, 4,47 billion (+5%), and the solvency ratio, which stands at 220%, an improvement compared to 216% in the same period of the previous year.
According to the CEO Thomas Buberl, “the group achieved a solid performance in the first half of the year, confirming the validity of our diversified model, capable of generating sustainable growth”.
No direct warning on tariffs, but the group's top management does not hide the difficulties of a macroeconomic context marked by geopolitical uncertainties and possible inflationary pressures linked to global trade tensions. During a conference call, the Deputy Director General Frederic de Courtois acknowledged that the increase in duties fuels inflation risks, with potentially significant effects also on the insurance sector but reiterated that Axa remains "at the top" of the objectives of the three-year plan and that the growth strategy will not slow down.
Stock market reacts negatively, with Axa shares down 6,5%.
The stock market, however, did not reward management's optimism. Axa shares on the Paris Stock Exchange fell by more than 6,5%, settling at 40 euros., weighed down by investors' concerns about the impact of the Prima acquisition on regulatory capital and the financial exposure required by the transaction.
