FILE PHOTO: A brand of insurer Axa is seen on the entrance of the corporate's headquarters in Brussels, Belgium March 5, 2018. REUTERS/Yves Herman
PARIS (Reuters) – French insurer AXA (AXAF.PA) stated it anticipated to e book web proceeds of $3.1 billion from the sale of a 29% stake in AXA Equitable Holdings (EQH) (EQH.N) because it exits its U.S. life insurance coverage enterprise.
AXA, the second-largest European insurer after Germany’s Allianz (ALVG.DE), has been progressively divesting from EQH to boost funds to pay for its $15 billion acquisition of Bermuda-based rival XL final 12 months.
AXA stated in an announcement on Friday it had offered 144 million EQH shares at $21.80 per share to Goldman Sachs (GS.N), the only underwriter in a secondary public share providing anticipated to shut on Nov. 13.
EQH has agreed to repurchase 24 million shares on the identical value.
AXA stated that proceeds from the deal would increase the group’s Solvency II capital necessities ratio by six factors and that no important web earnings impression was anticipated.
After the deal, the French group will retain solely a 9.6% stake it must redeem an AXA bond maturing in Could 2021 that must be exchangeable in EQH shares.
Reporting by Leigh Thomas; Enhancing by Alexander Smith