AXA To Sell Its UK Advisor Platform Business Elevate to Standard Life -- Update

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 [e-mail]

(END) Dow Jones Newswires

May 04, 2016 04:55 ET (08:55 GMT)

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