French insurer Axa SA (AXAHY.PK) announced Monday its agreement to sell its insurance operations in Singapore to Asia-focused lender HSBC Holdings Plc (HSBC,HSBA.L) for $575 million or 487 million euros.
The transaction is subject to closing conditions, including the receipt ofregulatory approvals, and is expected to close by fourth quarter.
AXA Singapore is a composite insurer, offering L&S, Health and P&C solutions to around 1 million customers. Its fiscal 2020 IFRS gross revenues and underlying earnings were 579 million euros and 20 million euros, respectively.
The planned sale of AXA Insurance Pte Ltd. or AXA Singapore is estimated to result in a negative net income impact of about 160 million euros in AXA Group’ s fiscal 2021 results.
Gordon Watson, CEO of AXA in Asia and in Africa, said, “In line with the Group’s strategy, we are focusing on our core markets where we have the size, presence in the right business segments and a strong potential to grow. We have in Asia a unique set of assets across established and high potential markets where we are deploying our vision, notably in health and
protection, bringing high value products and services to our customers.”
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