AXA Sells UK Pensions and Direct Protection Businesses to Phoenix

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.

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 [e-mail]

(END) Dow Jones Newswires

May 27, 2016 02:06 ET (06:06 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.