Axa SA sold its Gulf business for $269 million to a Kuwait-based group, as the French insurer shifts its focus and exits some overseas investments to shore up its finances.
Event Location
Kuwait , Kuwait
Start Time
03 December 2020, 12:00 AM
End Time
31 December 2020, 12:00 AM
French insurance group AXA has agreed to divest its insurance operations in the Gulf region to Kuwait-based Gulf Insurance Group (GIG) for $269m in cash.
It sold stakes in Axa Gulf, Axa Cooperative Insurance Company and Axa Green Crescent Insurance Company to Gulf Insurance Group of Kuwait, in which Canada's Fairfax Financial Holdings Ltd. is a major shareholder.
Axa has been seeking to raise funds by divesting peripheral operations under CEO Thomas Buberl, who wants to focus on property and casualty insurance following a $15.3 billion purchase of XL Group Ltd. in 2018. It's also looking to shore up its capital buffers as the pandemic weighs on its profits.
Buberl said, "This transaction marks another step in Axa's continued simplification journey". The insurer has been considering the sale of its business in Singapore and a general insurance venture in Malaysia. It's also held talks to sell its Greek business.
The total value of the sale to Gulf Insurance Group, which is expected to close by the third quarter of next year, is $475 million, according to a separate statement from the Kuwaiti company.
Kuwait business news 2020Axa Sells Gulf Operations GIG
