French insurance major AXA has divested approximately 76 million shares, equal to 12% stake, in its US life insurance business, AXA Equitable, for $1.5bn.

After completion of the transaction, AXA’s ownership in its American life insurance business decreased from 60.1% to 48.3%.

The disposal of shares in AXA Equitable is a milestone for the French insurer, which floated a minority stake in the unit in 2018, reported The Financial Times.

It decided to pull out of those businesses such as Axa Equitable that expose it to financial market risk.

The company’s focus areas are property and casualty insurance market. Last year, it strengthened its presence in this market following the acquisition of XL Group for $15bn.

AXA CEO Thomas Buberl told the publication that the sale was “a major milestone in AXA’S transformation journey, and provides additional financial flexibility for the Group, notably in the context of our stated priority to reduce leverage.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

AXA Equitable Holdings president and CEO Mark Pearson said: “Today marks an exciting new chapter for an institution that began in 1859 as The Equitable Life Assurance Society.

“We are once again one of the largest independent financial services companies in the U.S. And we remain committed to delivering on our long-term financial targets and providing attractive returns to our shareholders.”

J.P. Morgan, Morgan Stanley and Citigroup served as joint lead book-running managers and underwriters for the offering.

Barclays, BNP Paribas, Credit Agricole CIB, Deutsche Bank Securities, Goldman Sachs & Co., HSBC, Natixis, Societe Generale, Credit Suisse, ING and UniCredit Capital Markets acted as joint book-running managers and underwriters for the offering.