AXA to sell its insurance operations in the Gulf region
AXA has entered into an agreement with Gulf Insurance Group
Duba–AXA announced today that it has entered into an agreement with Gulf Insurance Group (“GIG”) to sell its insurance operations in the Gulf region, which includes its shareholding in AXA Gulf, AXA CooperativeInsurance Company and AXA Green Crescent Insurance Company.
GIG is a leading insurer in the Gulf region, strengthened by the global footprint and insurance expertise of Fairfax as well as the regional market knowledge of KIPCO, its shareholders.
As part of the transaction, Yusuf Bin Ahmed Kanoo (“YBA Kanoo”), one of the largest conglomerates in the Gulf region, will also sell its shareholding in AXA Gulf and in AXA Cooperative Insurance Company.
Under the terms of the agreement, AXA will sell its ownership in its operations in the Gulf region for a total cash consideration of USD 269 million (or Euro 225 million).
“This transaction marks another step in AXA’s continued simplification journey”, said Thomas Buberl, Chief Executive Officer of AXA.
“We are convinced that AXA’s operations in the Gulf region will benefit from GIG’s leadership and scale in the region, to further pursue their focus on delivering growth and excellent customer service.”
“I would like to thank the management teams and all the employees of our operations in the Gulf region for their continuous contribution and engagement over the years, and wish them all the success for the future.”
The transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to close by 3Q 2021