French insurance major AXA has divested approximately 76 million shares, equal to 12% stake, in its US life insurance business, AXA Equitable, for $1.5bn.
After completion of the transaction, AXA’s ownership in its American life insurance business decreased from 60.1% to 48.3%.
Go deeper with GlobalData
The disposal of shares in AXA Equitable is a milestone for the French insurer, which floated a minority stake in the unit in 2018, reported The Financial Times.
It decided to pull out of those businesses such as Axa Equitable that expose it to financial market risk.
The company’s focus areas are property and casualty insurance market. Last year, it strengthened its presence in this market following the acquisition of XL Group for $15bn.
AXA CEO Thomas Buberl told the publication that the sale was “a major milestone in AXA’S transformation journey, and provides additional financial flexibility for the Group, notably in the context of our stated priority to reduce leverage.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAXA Equitable Holdings president and CEO Mark Pearson said: “Today marks an exciting new chapter for an institution that began in 1859 as The Equitable Life Assurance Society.
“We are once again one of the largest independent financial services companies in the U.S. And we remain committed to delivering on our long-term financial targets and providing attractive returns to our shareholders.”
J.P. Morgan, Morgan Stanley and Citigroup served as joint lead book-running managers and underwriters for the offering.
Barclays, BNP Paribas, Credit Agricole CIB, Deutsche Bank Securities, Goldman Sachs & Co., HSBC, Natixis, Societe Generale, Credit Suisse, ING and UniCredit Capital Markets acted as joint book-running managers and underwriters for the offering.
