AXA to acquire Laya Healthcare

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

Laya is the second largest health insurance provider in Ireland with a ~28% market share, serving close to 700,000 policyholders and generating about €800 million premiums per year. It operates as an MGA 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. AXA is already present in Ireland where it benefits from a number one position in the P&C market.

Under the terms of the agreement, AXA will acquire Laya for a consideration of €650 million in cash, representing an expected price-to-earnings multiple of ~11x.

In 2015, AIG acquired Laya, which at the time served around 500k policyholders. Several reports put the deal value at ~€80 million.

“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.” – Patrick Cohen, CEO of AXA Europe and Health.

“This divestiture allows Corebridge to streamline its portfolio and focus on core Life & Retirement products and solutions in the United States. AXA is an excellent owner for laya healthcare, with a global platform that will enable the business to continue to build on the success of its highly regarded member-centric approach to health insurance.” – Peter Zaffino, chairman and CEO of AIG.