...Despite a decrease in profits for AXA, there remains...
AXA Acquires Majority Stake in Italian Insurer Prima: A Strategic Move Towards Digital Insurance Leadership
In a significant move, French insurer AXA has announced the acquisition of a 51% stake in Prima Assicurazioni, a direct insurer primarily active in motor insurance in Italy. This strategic long-term investment is expected to nearly double AXA's Motor insurance business in Italy and integrate Prima's tech-driven insurance platform into AXA’s operations.
The acquisition, announced on August 1, 2025, comes at a time when AXA remains a top pick among European insurers. However, the immediate market reaction has not been strongly positive, as the acquisition represents a near-term financial drag due to capital requirements and integration costs.
Despite this, AXA reported robust financial growth in the first half of 2025. Revenues increased by 7% year-on-year to €64.3 billion, and underlying earnings per share rose by 8%. The core businesses in property & casualty insurance and health & life insurance were growth drivers for AXA.
Thomas Buberl, CEO of AXA, remains optimistic about the group's performance. He reaffirmed AXA's medium-term profit targets, stating that the acquisition of Prima underscores AXA's expansion ambitions in its European core business.
The fund business at AXA showed a decline in adjusted results, but the attractiveness of AXA's stock is highlighted by the strategically sensible acquisition of Prima. The solid half-year results of AXA, despite currency headwinds, confirm the strength of the French company.
In terms of the acquisition's impact on AXA's stock performance, the current effect is modestly negative or neutral. The market appears to be adopting a "wait and see" approach, waiting for Prima’s successful integration and recapture of underwriting margins to materialize, which could underpin a positive revaluation of AXA shares in the mid to long term.
Investors with a multi-year horizon may view it as a value-driven strategic move towards digital insurance leadership. AXA's WKN code is 855705. Prima, which generated €1.2 billion in premium income in 2024, could provide additional impetus to AXA.
In conclusion, while the near-term effects of the acquisition on AXA’s stock are uncertain, the strategic acquisition of Prima is seen as a long-term investment that supports AXA’s expansion in the digital-first insurance segment, especially in Italy and Europe more broadly.
Sources:
- Strategic acquisition details and investment advice on short- and mid-term impacts.
- AXA’s strong H1 2025 financial growth supporting broader firm outlook but with cautious market reaction to acquisition.
- The impact of the acquisition on the overall performance of AXA remains to be seen.
- It is unclear how the acquisition of Prima could affect the AXA stock.
- The acquisition of Prima Assicurazioni by AXA represents a strategic long-term investment in digital insurance, with the aim of expanding AXA's operations and nearly doubling its Motor insurance business in Italy.
- Despite a modestly negative or neutral immediate impact on AXA's stock performance due to capital requirements and integration costs, the acquisition of Prima is seen as a value-driven move towards digital insurance leadership, particularly for investors with a multi-year horizon.
