AXA Equitable Holdings, Inc. has agreed to sell U.S. Financial Life Insurance Company (USFL) and MONY Life Insurance Company of the Americas, Ltd. (MLICA), to Heritage Life Insurance Company.
The total consideration for the transaction has not been disclosed and remains subject to changes in financial condition prior to closing. The deal is expected to close in the early 2020 and remains subject to regulatory approval and other closing conditions.
AXA Equitable Holdings, Inc. acquired USFL and MLICA at the same time it acquired the MONY Group in 2004, and both businesses have been in run-off since 2007. The firm states that the businesses have combined net statutory reserves of approximately $1 billion.
Andrew Malmstrom, AXA Equitable Holdings’ Chief Executive Officer (CEO), commented: “This transaction simplifies our balance sheet and is aligned with our strategy to improve the return on capital of our Protection Solutions segment.”
AXA Equitable Holdings adds that the sale of the two businesses in line with its strategy to reposition its balance sheet towards a higher capital return and less capital-intensive portfolio mix.
Wells Fargo Securities served as exclusive financial advisor and Debevoise & Plimpton LLP served as legal advisor to the firm in connection with the sale. While Sidley Austin LLP served as legal advisor to Heritage Life Insurance Company.