Axa sells Gulf operations to Kuwaiti group in $269m deal

Axa sells Gulf operations to Kuwaiti group in $269m deal

Axa SA sold its Gulf business for $269m to a Kuwait-based group, as the French insurance giant shifts its focus and exits some overseas investments to shore up its finances amid the coronavirus pandemic.

The Paris-based insurer said on Monday it sold its stakes in Axa Gulf, Axa Cooperative Insurance Company and Axa Green Crescent Insurance Company to Gulf Insurance Group, a Kuwaiti insurance group in which Canada's Fairfax Financial Holdings is a major shareholder.

Axa has been seeking to raise funds by divesting peripheral operations under chief executive officer Thomas Buberl, who wants to focus on property and casualty insurance following a $15.3bn purchase of XL Group Ltd. in 2018. It's also looking to shore up its capital buffers as the global pandemic weighs on its profits.

"This transaction marks another step in Axa's continued simplification journey,“ Buberl said.

The insurer has been mulling the sale of its business in Singapore and a general insurance venture in Malaysia, Bloomberg News has previously reported. It's also held talks to sell its Greek business.

Additional sales

As part of the Axa transaction, Gulf conglomerate Yusuf Bin Ahmed Kanoo will sell its shareholdings in Axa Gulf and Axa Cooperative Insurance Company. The total value of the sale