AXA Sells UK Pensions and Direct Protection Businesses to Phoenix -- Update
May 27 2016 - 2:39AM
Dow Jones News
By Nick Kostov
PARIS--AXA SA (CS.FR) has agreed to sell its investment,
pensions and direct protection businesses in the U.K. to insurer
Phoenix Group Holdings, part of the French insurer's strategy to
exit some parts of Europe to invest in faster growing markets.
Europe's second-largest insurer said last month that it had
already agreed to sell one part of the 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 632 million pounds ($927.49
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 400 million euros ($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 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 02:24 ET (06:24 GMT)
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