AXA acquires leading Mexican insurer Seguros ING

"This acquisition gives us a leading position in a large growth market on attractive conditions, as we believe we can leverage our know-how to restore Seguros ING's growth and profitability", said Henri de Castries, Chairman of AXA's Management Board. "Together with our recent transactions in Asia, Eastern Europe and the Mediterranean region, Seguros ING's franchise on the Mexican market strengthens AXA's growth profile, contributing to our Ambition 2012 plan and beyond".

AXA announced it has reached an agreement with ING for the acquisition of 100% of the share capital of its Mexican insurance subsidiary Seguros ING, for a consideration of USD 1.5 billion (ca. Euro 1.0 billion). Seguros ING is the third largest Mexican insurer (12% total market share, 5.5 million clients), with leading positions in key markets such as Motor (2nd largest player with a 17% market share) and Health (2nd largest player with a 19% market share). ING Seguros is also active on the Life market with a 6% market share. Seguros ING's franchise is supported by an extensive proprietary distribution network of 7,500 agents, of which 1,500 specialized life agents.

In 2007, Seguros ING is expected to post revenues of USD 1.9 billion¹, a combined ratio of ca. 105%, a net income at break even and shareholders' equity of approximately USD 0.9 billion. The Company's top line has been relatively stable over the last years, as it was gradually withdrawing from some non profitable large P&C business lines, while facing softening conditions in the motor business.

AXA intends to accelerate and complete the initiated turnaround of Seguros ING by dedicating seasoned management capabilities and leveraging the Group's global platforms and expertise, notably in IT and reinsurance. Upon completion of the transaction, Seguros ING will be integrated to AXA's Mediterranean Region unit and benefit from its knowhow in underwriting, claims management, client segmentation, service and brand management. Combining its strong franchise and AXA's expertise, Seguros ING should be in a position to benefit from the strong growth prospects of the Mexican market, an improved pricing environment and the emergence of under-developed segments (e.g. Household insurance), while extending its product range, particularly in the savings market.

AXA will finance the transaction with internal resources. Completion of the transaction is subject to customary regulatory approvals and is expected to take place in the course of 2008.

(1) Key financials presented have been normalized, on an IFRS basis, to reflect the scope of the transaction and have not been audited.