According to two individuals close to the situation, AXA (AXAF.PA) is contemplating the possibility of selling part of its protection insurance companies located throughout Western Europe in a transaction with a potential value of up to one billion euros ($1.1 billion).
According to one of the individuals, who spoke on the condition of anonymity, the French insurance giant has been in discussions with advisors over plans to sell the companies, which offer protection against unforeseen life occurrences like illness or accident, with the possibility of a sale occurring in the new year.
According to the second source, the action would result in at least a portion of AXA’s 2015 acquisition of Genworth Lifestyle Protection Insurance unraveling.
According to the second source, the sale may involve firms in France, Italy, Spain, and some parts of the United Kingdom. These countries are all within the jurisdiction of the AXA Partners division of the group.
The sources stressed that the discussions are still in the primary stages and that the ideas may be revised or disregarded.
AXA did not comment on the matter. If a merger were to occur, it would bring to light that traditional insurers have been reducing their non-core activities for years and looking for other ways to move their cash.
Earlier this year, the Dutch insurance company Aegon (50OR.L.) agreed with Royal London to sell a portfolio of protection contracts in the United Kingdom.
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