AXA to buy-out OYAK's 50% stake in AXA OYAK

AXA announced today it has entered into an agreement to acquire OYAK's fifty percent (50%) share in AXA OYAK Holding A.S.¹ («AXA OYAK»), a company established by AXA and OYAK in 1999. Under the terms of the agreement, AXA will pay a purchase price of $525 million (approximately Euro 355 million) in cash for OYAK's 50% share in AXA OYAK.

AXA OYAK enjoys a leading position (10% total market share²) on the fast-growing Turkish insurance market. Mainly focused on non-life, especially motor and property, the company has experienced strong top-line growth in the past years and is one of the most profitable players in the market. In the first half of 2007, AXA OYAK posted revenues of Euro 342 million (+20%³) and underlying earnings of Euro 19 million (+26%³).

This agreement is an opportunity for the AXA Group to significantly strengthen its presence in Turkey and is in line with its strategy of reinforcing its exposure to emerging insurance markets. The transaction, which is subject to local regulatory approval, is expected to close by early spring of 2008. Following closing, the parties have agreed that AXA OYAK and its subsidiaries will no longer use the OYAK name or trademark.

Consult the press release

(1) Turkey's second largest insurer.
(2) As of June 30, 2007 - Source: Association of the Insurance and Reinsurance Companies of Turkey.
(3) Both 1H07 vs. 1H06 growth rates are on a comparable basis.