AXA: AXA to buy 50% of Tian Ping, a Chinese Property & Casualty insurance company with strong Direct capabilities

PR Newswire/Les Echos/ 
PARIS, 24 APRIL 2013 
AXA to buy 50% of Tian Ping, a Chinese Property & 
Casualty insurance company with strong Direct capabilities 
* Total consideration of Euro 485 million(1) 
* AXA would have the opportunity to further strengthen its position in  
Direct as well as in high growth markets, in line with its Ambition  
AXA strategy 
* Tian Ping is increasingly focusing on direct distribution, a growth  

    strategy that would be supported by AXA's global P&C expertise

  * AXA should become the largest foreign Property & Casualty insurer in China 
    and consolidate its position as largest international P&C insurer in Asia 
    (excluding Japan)

AXA announced today it has entered into an agreement with Tian Ping Auto
Insurance Company Limited ("Tian Ping") shareholders to acquire 50% of the
company. Under the terms of the agreement and subject to regulatory approval,
AXA will buy 33% of the company from Tian Ping's current shareholders for RMB
1.9 billion (or Euro 237 million) and subscribe to a dedicated capital increase
for RMB 2.0 billion (or Euro 248 million) to support future growth. AXA and 
Tian Ping's current shareholders will jointly control Tian Ping. AXA's 
existing Chinese P&C operations are expected to be integrated within the new

Tian Ping has Property & Casualty licenses covering most Chinese provinces as
well as a direct distribution license covering all these provinces and is 
mainly focusing on motor insurance. AXA and Tian Ping will leverage this 
extensive geographical footprint to further develop their P&C presence in 
China, including in commercial lines, retail non-motor and health insurance. 
AXA should be able to benefit from the new regulation enacted in the second 
half of 2012 that allows foreign companies to underwrite motor third party 
liability insurance.

Tian Ping has a successful growth and profitability track record in the Chinese
motor insurance market. The direct distribution channel, which accounted for 
ca. 20% of Tian Ping's premiums in 2011, is at the heart of the company's 
growth strategy.

"This acquisition pro vides AXA with unique direct distribution capabilities in
the fast-growing P&C insurance market in China, thanks to Tian Ping's extensive
knowledge of the domestic market. It further strengthens the profile of AXA 's
global P&C franchise and is another stepping stone towards our ambition to
accelerate further in high growth markets. Combined with our successful life
insurance joint-venture ICBC-AXA, this operation confirms our strategic focus
and presence in one of the most dynamic markets in the industry. We are looking
forward to serving Tian Ping's customers, in particular by developing the 
direct distribution channel and offering value-for-money products as well as
high-quality services", said Henri de Castries, Chairman and CEO of AXA.

The transaction is subject to customary closing conditions, including the
receipt of the approval of the China Insurance Regulatory Commission.

(1) EUR 1 = RMB 8.072 as of April 22, 2013



The Chinese P&C insurance market has grown at an annual rate of 23% from 1981 
to 2011, reaching a total premium income of RMB 564 billion (or Euro 
62 billion) in 2011(2). P&C insurance penetration rate stood at 1.2% of GDP in 
20112. Among the 62 P&C insurers in operation in China, 41 domestic insurers 
account for 98.8% of the market while 21 foreign-funded insurers account for 
1.2%(3). Distribution is dominated by agent networks while the direct 
distribution channel is the fastest growing, benefitting from more than 500 
million Internet users in China(4). The Chinese car insurance industry is the
most dynamic in the world, with 19 million vehicles sold in 2012, vs. 
6 million in 2005(5).


Tian Ping was established in December 2004 with headquarters in Shanghai. It 
was the first insurance company specialized in motor insurance in China and 
one of the first insurers to receive a direct distribution license.

In 2011, Tian Ping recorded Gross Written Premiums (GWP) of RMB 4,023m(6) (or
Euro 447 million), a 28% increase over 2010, with ca. 20% of GWP stemming from
the direct channel. In 9M12, Tian Ping had a share of 0.83% of the Chinese
Property & Casualty insurance market(2). From 2006 to 2011, the company 
achieved above 50% average annual growth in terms of premiums. At the end of 
June 2012, Tian Ping had established 62 offices in 18 provinces in China, with 
over 5,000 employees and provided insurance services to more than 4 million 
clients. The company is well known in China for its unique and cost-efficient 
business model.


Year                                2009     2010     2011
Premium (Euro million)(6)            200      348      447
Market Share (P&C)(8)               0.6%     0.8%     0.8%
Combined ratio (%)(6)                98%      97%      93%
Net Profit (Euro million)(6)          15       20       28
Total Assets (Euro million)(6)       258      515      710


AXA has shown a strong commitment to the Chinese market over the last two
decades and now has operations in Life & Savings (through ICBC-AXA Life), in
Property & Casualty (through AXA General Insurance China), in Asset Management
(through its joint-venture AXA-SPDB Investment Managers) and in assistance.

As of December 2012, AXA General Insurance China was present in Shanghai, with
around 100 employees. In FY12, it generated Euro 42 million of premiums with a
combined ratio of 88%.

(2) Source: Swiss Re, sigma No 3/2012
(3) Source : PwC, Foreign insurance companies in China, December 2012
(4) Source: China Internet Network Information Center
(5) Source: OICA
(6) Chinese GAAP
(7) Tian Ping did not publish its 2012 financial statements yet
(8) Source: Tian Ping's audited financial statements


The AXA Group is a worldwide leader in insurance and asset management, with 
160,000 employees serving 102 million clients in 57 countries. In 2012, IFRS 
revenues amounted to Euro 90.1 billion and IFRS underlying earnings to Euro 
4.3 billion. AXA had Euro 1,116 billion in assets under management as of 
December 31, 2012.

The AXA ordinary share is listed on compartment A of Euronext Paris under
the ticker symbol CS (ISN FR 0000120628 - Bloomberg: CS FP - Reuters:
AXAF.PA). AXA's American Depository Share is also quoted on the OTC QX
platform under the ticker symbol AXAHY.

The AXA Group is included in the main international SRI indexes, such as 
Dow Jones Sustainability Index (DJSI) and FTSE4GOOD.

It is a founding member of the UN Environment Programme's Finance Initiative 
(UNEP FI) Principles for Sustainable Insurance and a signatory of the UN 
Principles for Responsible Investment.

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but not limited to, statements that are predictions of or indicate future
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such statements because, by their nature, they are subject to known and unknown
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-0- Apr/24/2013 08:42 GMT
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