AXA Group

AXA announced today it has reached an agreement with Reso Garantia's ('RESO') shareholders to acquire a 36.7% stake in the company. As part of this agreement, AXA will have the option to buy out the remaining stake through calls exercisable in 2010 and 2011. AXA and RESO's shareholders have also agreed to form a joint venture to develop an operation on Russia's emerging life & savings market.

Founded in 1991, RESO has built one of the leading P&C insurance franchises in Russia (7% market share), notably focused on retail motor, and supported by a network of 18,000 agents, the 2nd largest in Russia. In the first half of 2007, the company posted revenues of Euro 446 million and a net income of Euro 41 million. Shareholders' equity was Euro 195 million as of June 30, 2007. RESO's current shareholding structure is mainly composed of the founders and management of the company and the EBRD.

Under the terms of the agreement, RESO's current management team will continue to run the company and roll-out its successful strategy. AXA will have management control of the life joint venture.

"RESO is a high quality company, with a strong management team and a leading competitive position based on solid and healthy fundamentals," said Henri de Castries, Chairman of the AXA Management Board. "This strategic investment is an excellent opportunity for AXA to enter the Russian insurance market, which offers strong growth prospects and a favorable business environment. With this acquisition, AXA will further reinforce its growth profile and increase its exposure to emerging insurance markets".

This transaction is expected to be completed during the first half of 2008. As part of the agreement, AXA will grant a 6-year $1 billion credit facility to RESO's main shareholder, fully secured by its shareholding in the company.