Posted on 20 Dec. 2020 at 17:49Updated 20 Dec. 2020 at 17:50
The crisis has not dissuaded Malakoff Humanis from putting his hand in his pocket to grow. On Friday, the French heavyweight in the health and provident insurance market for companies, announced that it had entered into exclusive negotiations with the Lyon brokerage group April to take over its insurance company Axéria Prévoyance.
Focused on health insurance and individual provident insurance as well as borrower insurance, the company of around thirty people also active in health and collective provident insurance, generated around 400 million euros in turnover in 2019 Its sale had aroused the interest of big names in insurance, such as Swiss Re and Allianz and Prévoir but, according to our information, Malakoff Humanis would have finally won by putting on the table between 200 and 250 million euros .
Loan insurance, a “cash cow”
With this acquisition, the social, mutual, parity and non-profit protection group, which generates nearly 85% of its turnover in collective insurance, has “Increase its development in individual insurance and on TPE and TNS (self-employed) customers” and “ strengthen its positions in the creditor insurance market ”.
“ It is an operation that creates value, it will help increase the results of Malakoff Humanis ”, insists Thomas Saunier, the boss of Malakoff, who had bought an individual health insurance portfolio from Aviva in 2017 and remains on the lookout for “opportunities”.
This acquisition reflects in particular the interest aroused by the individual provident insurance and creditor insurance markets. “Individual pension provision is very well marginalized”, assures Cyrille Chartier-Kastler, head of the consulting firm Facts and Figures. He points to the profitability of loan insurance at a time when insurers are pleading for more competition in this market dominated by banks.
The covid-19 crisis, complicates the situation
This movement by Malakoff Humanis, yet to obtain the green light from the supervisory and competition authorities, comes however when its flagship market, that of provident and collective health insurance, has been under pressure for years. Faced with companies who are careful about prices, insurers are faced with structural phenomena (aging of the working population, transfers of social security charges, etc.) which cause their spending to slip.
The Covid-19 crisis further complicates the situation. It has lowered interest rates, increased work stoppages and pushed authorities to tax the industry. It also threatens to explode the cost of portability of guarantees benefiting the unemployed.
At the same time as the acquisition, Malakoff Humanis and April announced the signing of a “Strategic partnership », Which should allow the insurer, already a partner of April, to rely, to market its products, on the broker’s large distribution network. This dominates the wholesale insurance broker sector, that is to say intermediaries between insurers and local brokers.
The sale of Axéria Prévoyance allows the Lyon group, in the hands of the British investment fund CVC for almost a year, to refocus on brokerage and abandon the highly regulated and costly “risk-carrying” activities. own funds. The group was advised by Rothschild & Co while Malakoff was supported by Nemrod Partenaires and PwC Corporate Finance.