On Wednesday, Axa received an “irrevocable offer” from Cinven for the potential sale of Axa Life Europe (ALE), a platform that designed, manufactured and distributed the firm’s variable annuity products across Europe.
ALE has over 60 employees and manages around 248,000 insurance contracts.
Before it closed to new business in 2017, ALE distributed products across Europe through the Axa networks in Germany, France, Spain, Italy and Portugal and via third-party distribution channels.
The German insurance contracts account for more than 70% of ALE’s portfolio. The policy administration services for these contracts will continue to be provided by Axa Germany.
The sale will net Axa €925m in cash from the sale of ALE shares, plus €240m in a capital distribution from ALE to Axa.
The deal is subject to customary conditions and is expected to be finalised by the end of 2018 or early 2019.
Gerald Harlin, deputy chief executive and group chief financial officer of Axa Group, said: “This transaction represents another important step towards improving the balance between technical and financial margin, in line with our Ambition 2020 ‘Focus and Transform’ strategy.
“I would like to take this opportunity to thank Axa Life Europe’s management and all the employees for their tremendous commitment over the years.”