AXA has entered an agreement to sell its insurance businesses in the Gulf region to Gulf Insurance Group (GIG) for US$269 million (around CA$349 million).
These include its shareholdings in AXA Gulf, AXA Cooperative Insurance Company and AXA Green Crescent Insurance Company, according to a statement from the France-based insurance heavyweight.
The deal, subject to regulatory approvals, is expected to close in the third quarter of 2021.
As part of the transaction, Yusuf Bin Ahmed Kanoo (YBA Kanoo), a major conglomerate in the region, will also sell its stakes in AXA Gulf and in AXA Cooperative Insurance Company.
GIG is one of the largest insurance groups in the Gulf region, backed by Canadian financial services giant Fairfax and Middle Eastern business conglomerate KIPCO.
“This transaction marks another step in AXA’s continued simplification journey,” said AXA chief executive Thomas Buberl. “We are convinced that AXA’s operations in the Gulf region will benefit from GIG’s leadership and scale in the region, to further pursue their focus on delivering growth and excellent customer service. I would like to thank the management teams and all the employees of our operations in the Gulf region for their continuous contribution and engagement over the years, and wish them all the success for the future.”