AXA has completed the acquisition of a majority stake in Prima, advancing its strategy in the Italian digital motor insurance market.
The insurer has taken a 51% holding in the company for €500 million, with call and put options tied to Prima's earnings giving AXA the ability to acquire the remaining 49% in 2029 or 2030.
The transaction, which includes the re-capture of business currently written by third-party carriers, is expected to reduce AXA Group’s Solvency II ratio by six points, in line with previously communicated expectations. This impact reflects the shift of premiums and risk back onto AXA’s balance sheet as Prima’s portfolio transitions under direct underwriting.
A growing insurer
Prima, founded in 2015, is a digital-focused insurance provider in Italy with €1.2 billion in premiums for 2024. The company holds roughly 10% of the Italian retail motor market, operating a direct distribution model supported by proprietary technology and advanced data analytics. Prima reported a combined ratio of 90% in 2024 and employs over 1,100 staff, including 400 technology specialists. The firm has also expanded into the UK and Spanish markets.
The acquisition is expected to nearly double AXA’s motor insurance business in Italy and strengthen its direct distribution channel, which generated €3.5 billion in premiums across eight markets for the group in 2024. AXA said the deal will broaden its reach to digitally oriented and price-sensitive customers while complementing its traditional distribution networks.
An opportunity to scale
The majority stake gives AXA a platform to scale its digital motor proposition in Italy, aligning with broader market trends where telematics, online distribution, and pricing transparency continue to reshape customer expectations. Integration efforts will focus on bringing Prima’s underwriting activity fully in-house, consolidating technology systems, and preparing for a potential full takeover later in the decade under the agreed option terms.
Completion of the acquisition is subject to regulatory approvals and is expected by the end of 2025, positioning AXA to significantly expand its footprint in the Italian motor insurance market.
