Reuters has reported that a number of sources have claimed that French insurance giant AXA is considering the sale of its Central European business as part of a restructuring to exit markets where the firm does not have sufficient scale.
Reportedly, information packs regarding the sale have been sent to potential investors, while one source said to Reuters that “AXA plans to sell its businesses in Poland, the Czech Republic and Slovakia.”
A further two sources have confirmed to Reuters the planned sales, with one adding that Polish insurer PZU, Italian insurer Generali and Germany’s Allianz were among the firms to receive information packs on the sale.
According to Reuters, one source explained that 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 the first-half of 2019, AXA reported a 4% increase in revenues, boosted by the results of AXA XL. Underlying earnings also increased in the period, which the firm explained was driven by growth in its key markets, notably Europe and Asia.
As noted by Reuters, the insurer has a focus on expanding in Asia following its takeover of XL, while on a broader level, the firm is going through a restructuring phase in an effort to offset the low interest rate environment and improve its health, property and damage businesses.