AXA expects to book US$3.1 billion gain from EQH exit

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AXA expects to book US$3.1 billion gain from EQH exit
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French insurer AXA said it expected to book net proceeds of US$3.1 billion from the sale of a 29per cent stake in AXA Equitable Holdings (EQH) ...

PARIS: French insurer AXA said it expected to book net proceeds of US$3.1 billion from the sale of a 29per cent stake in AXA Equitable Holdings as it exits its U.S. life insurance business.

AXA, the second-largest European insurer after Germany's Allianz , has been gradually divesting from EQH to raise funds to pay for its US$15 billion acquisition of Bermuda-based rival XL last year.AXA said in a statement on Friday it had sold 144 million EQH shares at US$21.80 per share to Goldman Sachs , the sole underwriter in a secondary public share offering expected to close on Nov. 13.

After the deal, the French group will retain only a 9.6per cent stake it needs to redeem an AXA bond maturing in May 2021 that has to be exchangeable in EQH shares.

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