AXA to Sell Insurance Portfolio in Germany
15 Julho 2022 - 2:50AM
Dow Jones News
By Joshua Kirby
AXA SA's German subsidiary has reached an agreement to sell a
portfolio of life and pensions insurance reserves worth 16 billion
euros ($16.03 billion,) the insurer said late Thursday.
Under the terms of the agreement, AXA Germany will sell the
portfolio to privately held Athora Deutschland for EUR660 million,
resulting in net cash proceeds of EUR400 million. The portfolio is
mainly composed of traditional savings policies and has been closed
to new business since 2016, AXA said.
In order to offset the earnings dilution from the disposal, AXA
will launch a share buyback following the transaction, the
Paris-based insurer said.
The reduction of guarantees on AXA's balance sheet will lessen
exposure to risk in financial markets, the company said, adding
that the transaction is expected to close by the end of the next
year, subject to closing conditions. Under the deal, AXA will
provide administrative services to Athora Deutschland until 2028,
after which point the latter company will take over management of
the contracts.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
July 15, 2022 01:35 ET (05:35 GMT)
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