French insurer AXA is in talks with British rival Resolution on a €3.3 billion deal to sell its life insurance and savings businesses in Britain, the French company said today.
'If implemented, this transaction would result in AXA retaining its AXA Wealth Management and AXA Direct Protection businesses and selling the remainder of its UK life and savings business to Resolution Ltd,' it said in a statement.
AXA said that the deal, which would require Resolution's shareholders and regulators' approval, would leave it with net cash proceeds worth €1.7 billion. AXA employs 11,000 people in Britain.
'There is no certainty these discussions will result in a transaction being signed, or if signed, that the transaction will ultimately be completed,' it cautioned, however.
'This potential transaction does not call into question in any way the AXA Group's continuing longterm commitment to the UK market going forward,' the company said.
UK reports have said Resolution will soon ask its shareholders to fund the bid. The deal would make Resolution a strong foothold in the group pensions businesses, merging AXA with its Friends Provident operations, which Resolution took over in August last year.
Resolution is trying to lead consolidation in Britain's insurance sector and Friends was its first major acquisition in its bid to acquire three to four insurers over the next few years.
