Axa to sell part of its British biz

LONDON: The French insurance major Axa will sell some of its British businesses to English firm Resolution in a 2.75-billion pounds deal. The proposed sale is in tune with Axa''s intention to focus on growing its wealth management in the British life and savings market, the insurer said in a statement today.

The French company will be selling its traditional life and pensions businesses, IFA protection and corporate pension businesses, and annuity businesses in Britain for 2.75 billion pounds to Resolution, out of which Resolution will be paying 2.25 billion pounds in cash. "With this transaction, we are selling our businesses, notably protection and group pensions, which will benefit from Resolution''s bigger scale in these activities.

We will focus on our British wealth management business where we are among the leaders and plan to continue to grow fast," Axa Group chairman and chief executive Henri de Castries said. Once the transaction is complete, about 2,200 Axa employees will be transferred to Resolution.

Asserting its long-term commitment to the British market, the group said Axa Britain will continue to develop its leading wealth management operations. "The Axa Group also remains fully committed to all its other England-based businesses including Axa Insurance, Axa PPP Healthcare, Bluefin and the British operations of Axa Investment Managers," it added.

Axa has a good presence in India through its life insurance joint venture with Bharti Enterprises. In Bharti Axa Life venture, Bharti has a 74 per cent stake while the rest is held by Axa Asia Pacific Holdings.