Axa to Sell Sunlife, Other Businesses to Phoenix Group in Deal Worth About £632 million
May 27, 2016 by Dennis Gorski
NEW YORK – Axa S.A. said it plans to sell its non-platform investment and pensions business and its Sunlife direct protection business in the United Kingdom to Jersey-based Phoenix Group Holdings, a closed life fund consolidator. These deals in total would amount to about £632 million (US$928.6 million) and generate a net loss of about €400 million (US$447.1 million), Axa said.
The Sunlife life and savings businesses is the latest of several transactions announced by Axa. Recently, the French multiline insurer concluded the sale of the offshore investment bonds business based in the Isle of Man announced on April 28, and the sale of the wrap platform Elevate announced on May 4.
The operations affected by these transactions will be treated as discontinued operations in Axa’s 2016 consolidated financial statements, the company said. As a result, their earnings will be accounted for in net income until the closing date. Axa expects to close the Sunlife deal in the second half of this year.
Axa also expects to realize an exceptional gain of $1.1 billion after tax on the disposal of two real estate properties in the United States, which will be accounted for in net income during the first half of 2016.
Axa has also made two executive appointments.
Nick Lane, currently Head of Axa U.S. Life and Retirement, has been promoted to chief executive officer of Axa Japan, effective July 1. He succeeds Jacques de Peretti, who was appointed CEO of Axa France, according to William Webster, managing director for brand development, reputation and marketing services.
Lane will report to incoming Axa Group CEO Thomas Buberl.
Brian Winikoff will be joining Axa to succeed Lane as Head of U.S. life, retirement and wealth management. He is currently president and CEO of Crump Life Insurance Services, an independent distributor of life, long-term care insurance, disability and annuity products in the United States.
Underwriting units of Axa SA have current Best’s Financial Strength Ratings ranging from A+ (Superior) to B+ (Good).
(By Dennis Gorski, managing editor-online, BestWeek: Dennis.Gorski@ambest.com)
