AXA to Sell Insurance Portfolio in Germany

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 [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

July 15, 2022 01:35 ET (05:35 GMT)

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