February 7, 2020 / 8:30 PM / 10 days ago

AXA agrees with Uniqa to sell CEE business for 1 billion euros

FILE PHOTO - The logo of insurer Axa is seen at the high profile startups and high tech leaders gathering, Viva Tech,in Paris, France May 16, 2019. REUTERS/Charles Platiau

PARIS (Reuters) - France’s AXA (AXAF.PA) said on Friday it had agreed with Austrian insurer Uniqa (UNIQ.VI) to sell its operations in Poland, Czech Republic and Slovakia for 1 billion euros ($1.09 billion).

AXA is quitting markets where it lacks scale as part of a deep restructuring to cope with a negative interest rate environment.

The sale would help improve AXA’s solvency ratio by 2 points, the insurer said, adding that it did not expect any significant impact on its net income from the sale.

Uniqa said in a separate statement it planned to finance the acquisition via borrowing rather than a capital increase.

It expects the solvency-capital ratio to be in the upper third of its target corridor of 155% to 190% after the deal is completed.

Reporting by Maya Nikolaeva; Editing by Andrew Cawthorne

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