AXA announced it has entered into a partnership with mBank whereby AXA would benefit from 10-year exclusive distribution agreements with mBank in Poland, for Property & Casualty and Life Protection insurance. In addition, AXA would acquire 100% of mBank’s Property & Casualty subsidiary in Poland, BRE Insurance.
The cash consideration would amount to PLN 570 million upfront (€136 million), subject to price adjustment at completion, and an additional deferred consideration of up to PLN 31 million (€7 million), subject to achieving certain targets and meeting certain conditions.
This transaction would allow AXA to strengthen materially its distribution reach in Poland through access to mBank’s innovative and fast-growing multi-channel distribution model, while shifting its business mix towards more Property & Casualty and Life Protection products in line with its Ambition AXA strategy.
mBank is the fourth retail bank in Poland, servicing around 4 million customers. In recent years, it has built a strong competitive advantage by developing a multi-channel approach through its internet and mobile platforms and more than 250 outlets. As the leader in electronic banking innovation in Poland and beyond, mBank was named as top digital model bank in Europe in 2014 by Celent Research. Therefore, mBank represents a unique partner for AXA in Poland as it takes another step further in its digital journey.
BRE Insurance is mBank’s Property & Casualty captive insurance subsidiary which underwrites mainly Motor, Payment Protection and Household Insurance. It is a fast-growing company with 15% annual premium growth from 2010 to 2013. With most of its motor policies sold online, it would allow AXA to strengthen materially its presence in the Direct Motor channel in Poland.
Completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to take place in the half of 2015.