French insurance and investment giant AXA may be looking to offload its Middle Eastern operations as Chief Executive Officer Thomas Buberl looks to continue streamlining efforts, according to reports from Bloomberg.
While AXA is yet to begin a formal sale process, people close to the matter have told Bloomberg that the insurer is working with HSBC on a strategic review.
Reports emerged late last year that AXA was looking to sell its Central European business, as part of a restructuring to exit markets where the firm does not have sufficient scale.
According to Reuters, one source explained the deal could be worth around €400 million (USD 442 million), while another said it could reach as much as €800 million (USD 883 million).
In addition, AXA is now over a year out from its high-profile $15.3 billion acquisition of XL Group.
The company said at the time that, as a premier specialty and large corporate P&C platform, XL Group would complement and diversify its existing commercial lines insurance portfolio and give it access to enhanced diversification and alternative capital through its reinsurance capabilities.
Now, Bloomberg sources state no final decisions have been made on a potential sale of AXA’s Middle Eastern operations and have stressed that there is no certainty that deliberations will lead to a transaction.
