AXA, the French multinational insurance giant, announced that it has entered into an agreement with Kuwait-based Gulf Insurance Group to sell its insurance operations in the Gulf region, which includes its shareholding in AXA Gulf, AXA Cooperative Insurance Co and AXA Green Crescent Insurance Co.
AXA’s insurance operations in the Gulf region are spread across Saudi Arabia, Oman, the UAE, Bahrain and Qatar.
Under the terms of the agreement, AXA will sell its ownership in its operations in the Gulf region for a total cash consideration of US$269mn, according to a statement issued by the company last week.
Gulf Insurance Group is a leading insurer in the Gulf region, strengthened by the global footprint and insurance expertise of Fairfax.
As part of the transaction, Yusuf Bin Ahmed Kanoo (YBA Kanoo), one of the largest conglomerates in the Gulf region, will also sell its shareholding in AXA Gulf and in AXA Cooperative Insurance Company.
Thomas Buberl, chief executive officer of AXA, said, “This transaction marks another step in AXA’s continued simplification journey. We are convinced that AXA’s operations in the Gulf region will benefit from Gulf Insurance Group’s leadership and scale in the region, to further pursue their focus on delivering growth and excellent customer service.”
AXA said the transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to close by the third quarter of 2021.
AXA and YBA Kanoo are amongst the top five insurers in the Gulf region. The companies in the Gulf region collectively have over 1,000 employees and serves over 1mn customers through more than 30 branches and sales outlets spread across the GCC region. They distribute a wide range of insurance products and services for corporate and individual customers with predominant focus on health and property and casualty.
AXA Cooperative Insurance Co is listed on the Tadawul stock exchange in Saudi Arabia, and AXA Green Crescent Insurance Co on the Abu Dhabi Securities Exchange.
The YBA Kanoo Group holds a portfolio of diversified businesses and strategic joint-ventures in both established and growing markets around the world. The group’s wholly owned activities are spread across the Gulf states: Bahrain, Saudi Arabia, UAE, Oman and Qatar with expanded activities across Africa, Europe and Asia.
Gulf Insurance Group is the largest insurance group in Kuwait in terms of written and retained premiums, with operations in life and non-life as well as takaful insurance.