AXA To Sell Its UK Advisor Platform Business Elevate to Standard Life -- Update
May 04 2016 - 5:10AM
Dow Jones News
By Noemie Bisserbe
PARIS--French insurer AXA SA is in talks to sell its entire U.K.
life and savings business for about 650 million pounds ($952
million), as the French insurer continues its withdrawal from parts
of Europe plagued by sluggish growth.
AXA said 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. It said Wednesday it expected
to complete the sale in the second half of the year.
Standard Life, a U.K. financial services company, said the deal
would create "one of the U.K.'s largest adviser platform
businesses," adding that more than 160,000 customers and increasing
assets under administration by GBP9.8 billion ($11.31 billion) to
GBP36.4 billion.
Europe's second-largest insurer by market value is also in talks
to sell its remaining U.K. life and saving assets, including its
SunLife direct protection business and its traditional investment
and pension business to another or several unidentified potential
buyers.
"There is no certainty these discussions will result in a
further transaction being signed or, if signed, that the
transaction will ultimately be completed," said AXA in a
statement.
AXA U.K. Property & Casualty business and its health and
asset management, known as Architas, won't be included in the
possible sale.
Last week, AXA agreed to sell an Isle of Man based offshore
business to Life Company Group for an undisclosed amount.
AXA and its peers in Europe have grappled with the eurozone's
uncertain investment market and low interest rates that have hurt
its asset management and savings products. A possible deal would
fit with the French insurer's strategy to exit parts of Europe to
reinvest in faster growing markets and more profitable
businesses.
In the short term, the sale of its U.K. life and saving assets
will have a EUR400 million negative impact on AXA's net income
AXA shares were up 0.3% at EUR22.11 in early trading in
Paris.
Rory Gallivan contributed to this article.
Write to Noemie Bisserbe at noemie.bisserbe@wsj.com
(END) Dow Jones Newswires
May 04, 2016 04:55 ET (08:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
AXA (QX) (USOTC:AXAHY)
Historical Stock Chart
From Jun 2024 to Jul 2024
AXA (QX) (USOTC:AXAHY)
Historical Stock Chart
From Jul 2023 to Jul 2024