AXA to sell its Dutch operations to SNS Reaal for Euro 1,750 Million
News
Group, June 4, 2007
AXA announced today that it has entered into a memorandum of understanding with SNS Reaal with a view to finalizing discussions on the sale of its principal Dutch insurance operations, comprising 100% of AXA Netherlands, Winterthur Netherlands and DBV Netherlands, for a total cash consideration of Euro 1,750 million, after consultation with trade unions and workers' councils.
AXA contemplates exiting the Dutch insurance market given the limited possibilities to reach a leading position through organic growth in the foreseeable future as this market is highly competitive and dominated by large local players (AXA's operations currently rank #7 in Life & Savings and #11 in P&C).
AXA's management believes that the proposed sale to a larger market participant is the most efficient way to maximize value creation in the context of AXA's active capital management discipline and its Ambition 2012 program, and that the proposed transaction should also create new and exciting opportunities for employees of its Dutch operations.