AXA vs. Allianz: Race for 1.5 billion euros for Prima Assicurazioni!

AXA vs. Allianz: Race for 1.5 billion euros for Prima Assicurazioni!

AXA and Allianz are in direct competition to acquire Prima Assicurazioni, a leading Italian insurtech provider founded in Milan in 2015. The potential purchase price could be over 1.5 billion euros. AXA is considered the favorite for the acquisition and the company is being advised by Deutsche Bank and Kitra Advisory. Allianz, on the other hand, receives support from Mediobanca, which further fuels competition for the purchase. Both insurance giants are interested in strengthening their market position in the digital insurance segment.

Prima Assicurazioni has established itself primarily in the area of ​​online motor vehicle insurance and has positioned itself as a Managing General Agent (MGA), in which it sells policies for third parties without directly bearing the insurance risk. In 2024, Prima achieved sales of 1.3 billion euros, an increase of 47% compared to 2023. Premium income is forecast to exceed €1.6 billion next year, with the company planning to sell 25% of its policies outside Italy by 2027.

Consolidation pressure in the insurance market

The planned sale of 100% of the shares in Prima Assicurazioni, backed by Goldman Sachs, follows failed attempts to open up capital, including an unsuccessful sale of a minority stake in 2023. The competition between AXA and Allianz highlights the consolidation pressure in the digital insurance segment, which is further reinforced by Prima's flexible business approach and its accelerated growth.

AXA recently outbid a binding offer from Allianz, while competitors Generali and CNP Assurances withdrew earlier. A successful purchase could position AXA to further expand its leadership in the digital insurance market in Italy while intensifying its innovative strength. This takeover could give Prima Assicurazioni the chance to become more financially stable and, if necessary, take on insurance risks directly.

Impact on the labor market

In parallel with this bidding war, Allianz is planning job cuts in the UK that will affect 650 employees in the commercial, specialty and personal insurance divisions. These cuts highlight the challenges large insurance companies face in a changing market.

The strategic moves by AXA and Allianz to acquire Prima Assicurazioni are not only important for the two companies, but they could also impact the entire digital insurance sector. The consolidation process could accelerate the digital transformation of the sector and encourage more providers to invest more in technology and international strategies.

How The shareholder reported, the question arises as to which company can ultimately carry out the takeover and what long-term consequences this will have for the Italian insurance trade. Further information on the consequences of the potential takeover can be found at Money.it.