AXA to sell its Canadian operations

AXA announced today that it has agreed to sell its Canadian operations in Property & Casualty and Life & Savings insurance to Intact Financial Corporation for a total cash consideration of CAD 2.6 billion (or ca. Euro 1.9 billion). This corresponds to implied 2010 multiples of 13 times underlying earnings and 1.9 times book value. This transaction should generate an exceptional capital gain of approximately Euro 0.9 billion, which will be accounted for in Net Income. In addition, AXA is entitled to receive up to CAD 100 million (or ca. Euro 72 million) in contingent considerations based on profitability metrics over a period of five years.