French insurance giant AXA has agreed to sell 100% of its Belgian banking operations to cooperative bank Crelan for a total consideration of €620 million.
The deal consists of €540 million in cash and the transfer to AXA Belgium of Crelan Insurance, the insurance company of Crelan valued at €80 million.
In addition, AXA and Crelan have agreed to enter into a long-term P&C and protection insurance distribution partnership, extending the existing partnership between AXA Bank Belgium and AXA Belgium to the Crelan network.
“This transaction is another important step in the execution of our Ambition 2020 strategy, as we concentrate on businesses with critical scale and continue to simplify our business profile,” said Thomas Buberl, Chief Executive Officer of AXA.
“We are extremely pleased to maintain our strong historical links through a continued partnership with AXA Bank Belgium, a key factor in this transaction, and to extend this partnership to Crelan’s network.
“Combining this with the transfer of Crelan’s insurance business to AXA, our leadership position in our preferred segments in Belgium will be further reinforced.
While the transaction is expected to result in a positive impact on AXA Group’s Solvency II ratio, it is expected to also result in a one-time negative Net Income impact of approximately Euro 0.6 billion in AXA Group’s FY19 consolidated financial statements.
“We are convinced that AXA Bank Belgium will strongly benefit from the consolidation with Crelan, leveraging on their respective scales and product offerings,” he added.
“I would like to thank AXA Bank Belgium’s management team and all the employees for their strong contribution and commitment over the years and wish them every success as part of the Crelan Group.”
Completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to be finalised in the second quarter of 2020.
