AXA has announced that it is to buy Laya Healthcare, the second largest healthcare insurer in Ireland, for €650m.
AXA said it has entered into an agreement to acquire the insurer from Corebridge Financial, a subsidiary of AIG.
Completion of the deal is still subject to conditions, including the receipt of regulatory approvals.
Laya has a leading position in the Irish health insurance market with around a 28% market share, serving 690,000 customers and generating around €800m in premiums.
Through this acquisition AXA enters the Irish healthcare market with a top two market share position.
The completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals.
AXA in Ireland is a market leader in the provision of motor vehicle insurance, holding over 30% of the market. It is also an active player in the home, commercial, and farm lines of business.
The organisation operates in both the Republic of Ireland and Northern Ireland, employing over 1,450 staff and has an extensive branch network of 34 branches.
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The CEO of AXA in Ireland, Marguerite Brosnan, said the acquisition underlines AXA's commitment to Ireland and fast-tracks its entry into the local and vibrant healthcare insurance sector.
"It is an exceptionally strong business recognised for its customer first approach of 'looking after you always', which very much reflects our own ethos of helping our customers 'protect what matters', she said.
"I look forward to the opportunities that this transaction will provide us to deliver new and exciting solutions that meet more customer needs, in more moments, each and every day," she added.
Patrick Cohen, chief executive of AXA Europe and Health said: "We are very pleased to join forces with Laya Healthcare, a company recognised in Ireland for its unwavering customer service, its strong brand, and its technical expertise.
"This acquisition 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," he said.
"Through its relentless focus on innovation and customer experience, Laya will bring invaluable assets to our broader health franchise, notably in terms of digitalisation of the healthcare journey and provision of health-related services."
Health insurance expert Dermot Goode said he thinks the acquisition of Laya Healthcare by AXA is good for the market and for the consumer also.
Speaking on Morning Ireland, he said there needs to be a minimum of three strong insurance providers in the market and to have three good players going forward is a positive.
He said for the close to 700,000 Laya customers it gives them certainty into the future.
From a consumer perspective, Dermot Goode said he would expect that over time AXA will start to cross-sell other products into the Laya membership.
"Hopefully that will give people better deals on maybe motor, maybe home insurance. And maybe all of the AXA customers might get offered some sort of discount or new type of health insurance," he stated.
HIA says no change for Laya customers after AXA deal
The Health Insurance Authority, the State agency that regulates the private health insurance market in Ireland, has welcomed today's news.
"We encourage competition in the market and are pleased that there continues to be three insurers in the market, with AXA's proposed acquisition of Laya," the HIA said.
It also reassured consumers that there will be no change for Laya policyholders after the deal and Laya will continue to look after its customers as before.
Almost 2.5 million people hold some form of private health insurance in Ireland, that represents almost 48% of the population.
Laya's current market share is almost 28%, with Vhi at 49% and Irish Life Health at just over 20%.
The average premium in the market is €1,493, the HIA said.
Speaking on RTÉ's News at One, Chairperson of the HIA, Patricia Byron, welcomed news of the sale.
"This is good news for the health insurance market, it is good to have three players," Ms Byron said.
"We have 48% of the population here insured in private health insurance, and Laya is 28% of that.
"It shows commitment to the Irish market that we have this third insurer, third offering in the market."
She did not think the sale would impact those who have insurance with Laya.
"We were contacted by their CEO last night and we were assured that it is business as usual," Ms Byron said.
"We regulate the market here, the private health insurance market for conduct of business.
"And that conduct, level of standard will be required from Laya now, whether they're owned by AIG or AXA."
