AXA announced today that it has entered into an agreement with UNIQA Insurance Group AG (“UNIQA”) to sell its operations in Poland, Czech Republic and Slovakia.
Under the terms of the agreement, AXA will sell 100% of its Life & Savings, Property & Casualty and Pension businesses in Central and Eastern Europe for a total cash consideration of Euro 1,002 million, representing an implied 12.4x 2019E P/E* multiple.
The completion of the transaction is expected to result in a positive impact on AXA Group’s Solvency II ratio of ca. 2 points. No significant Net Income impact is estimated for AXA Group from this transaction.
This transaction marks another step in the simplification of AXA’s footprint, we are convinced that AXA’s operations in Central and Eastern Europe will benefit from UNIQA’s strong presence and local expertise in the region to create new growth opportunities with a continued focus on delivering enhanced customer value propositions. I would like to thank the management teams and all the employees of our Polish, Czech and Slovakian operations, for their continuous engagement over the years and wish them all the success for the future.
Completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to be finalized by Q4 2020.
About AXA in Poland
AXA Poland offers a full range of Life and Savings (L&S), Property and Casualty (P&C), Pension, and Asset Management products and solutions to ca. 3.2 million customers. The company has 1,575 employees and distributes its products through two tailored multichannel networks, dedicated to P&C and L&S. It also benefits from an exclusive and multi-product bancassurance partnership with mBank. In 2018, it was ranked* 6th and 9th in P&C and L&S markets respectively and 6th in the Pension market. Revenues* of AXA Poland in 2018 were Euro 585 million.
About AXA in Czech Republic and Slovakia
AXA Czech Republic and Slovakia offers a comprehensive product suite of L&S, P&C and Pension solutions to ca. 1.6 million retail customers. The company has 527 employees and operates as one integrated platform, under a single management team active in both countries, through three Czech entities with branches in Slovakia. It has a diversified distribution mix consisting of brokers, tied agents and direct distribution channels. In 2018, it was ranked amongst the top 10 players in terms of market share* in P&C, L&S and Pension markets in both Czech Republic and Slovakia. Revenues* of AXA’s operations in Czech Republic and Slovakia* in 2018 were Euro 170 million.