AXA Canada to acquire The Citadel General Assurance Company

AXA Canada announced it has entered into an agreement to buy Winterthur Canada Financial Corporation, whose main asset is The Citadel General Assurance Company ("Citadel"). The acquisition is subject to various conditions, including the approval of Canadian regulatory authorities. Consideration will be ca. CAD$310 million. The acquisition will be financed internally by the AXA Group.

Headquartered in Toronto, Citadel sells accident and sickness, liability, property and automobile insurance. With some 350 employees, the company distributes its products through a network of approximately 350 independent property and casualty brokers, and 1,200 accident and sickness brokers and benefit consultants throughout Canada. In 2004, the company had revenues of CAD$330.5 million and assets of CAD$669 million.

The transaction, which will boost AXA Canada from 11^th to 6^th position in the P&C market and its revenues to more than CAD$1.6 billion, will provide several key strategic benefits for AXA Canada, including:

• Significant growth in commercial lines volume and expertise;
• Diversification of its portfolio in all Canadian markets;
• Further development of its Financial Services and Life Insurance volume with the addition of new accident and sickness insurance products;
• Expansion of its distribution network through the addition of new brokers;
• The opportunity to provide additional solutions and products to its brokers and clients.