AXA Sells U.K. Pensions and Direct Protection Businesses to Phoenix
May 27 2016 - 3:20AM
Dow Jones News
By Nick Kostov
PARIS-- AXA SA has agreed to sell its investment, pensions and
direct protection businesses in the U.K. to Phoenix Group Holdings
for GBP375 million ($549.77 million) in cash, part of the French
insurer's strategy to exit some parts of Europe and invest in
faster growing markets.
Phoenix, one of the largest providers of insurance services in
the U.K., said it would finance the deal through a combination of a
new share placing and new debt.
AXA, Europe's second-largest insurer, said last month it had
already agreed to sell one part of its U.K. business--an adviser
platform business called Elevate--to Standard Life PLC for an
undisclosed amount, as well as announcing the sale of its offshore
investment bonds business based in the Isle of Man in April.
Taken together, AXA has raised GBP632 million from the sale of
its entire U.K. life and savings business, the company said. It
said the divestments would reduce net profit by EUR400 million
($447.68 million).
AXA and its peers in Europe have been grappling with the
region's uncertain investment market and low interest rates that
have hurt its asset management and savings products. The deal is
part of the French insurer's strategy to exit parts of Europe to
then reinvest in faster growing markets and more profitable
businesses.
The transaction with Phoenix Group--which includes the sale of
AXA's direct protection business Sunlife in the U. K.--is expected
to close in the second half of 2016.
Write to Nick Kostov at Nick.Kostov@wsj.com
(END) Dow Jones Newswires
May 27, 2016 03:05 ET (07:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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