AXA announced today that it has completed the sale of its Belgian banking operations, AXA Bank Belgium, to Crelan Bank NV/SA (“Crelan”), for a total consideration* of Euro 691 million, comprised of (i) a net cash consideration of Euro 611 million** , and (ii) the transfer to AXA Belgium of 100% of Crelan Insurance*** (valued at Euro 80 million). In addition, AXA and Crelan have entered into a long-term P&C and Protection insurance distribution partnership which will be effective on January 1, 2022, extending the existing partnership between AXA Bank Belgium and AXA Belgium to the entire Crelan network.
The completion of this transaction marks another step in AXA’s simplification journey. We are pleased to maintain strong links with AXA Bank Belgium through this long-term partnership and to further extend it to Crelan’s network. I would like to thank the AXA Bank Belgium teams for their continuous contribution and engagement over the years and wish them all the success for the future with Crelan, leveraging on their combined scale and product offering.
The parties have amended their original agreement whereby AXA has today subscribed Additional Tier 1 debt**** issued by Crelan for an issue price of Euro 245 million instead of acquiring a minority equity stake of 9.9% in Crelan for Euro 90 million, as communicated at the time of the signing of the transaction. As per the terms of the initial agreement, Crelan has also purchased for Euro 90 million the contingent convertible bonds previously issued by AXA Bank Belgium to AXA Group. The completion of the transaction is expected to result in a positive impact of 4 points on AXA Group’s Solvency II ratio in 4Q21.
* In cash terms, AXA S.A. will receive Euro 691 million for the sale of AXA Bank Belgium and AXA Belgium will pay Crelan Euro 80 million for the purchase of Crelan Insurance.
** Including a price adjustment reflecting customary closing conditions.
*** The insurance company of Crelan, providing protection insurance linked to loans originated by Crelan.
**** Perpetual debt callable in 2027, subscribed by both AXA S.A. and AXA Belgium.