Bloomberg Anywhere Remote Login Bloomberg Terminal Request a Demo

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Axa Said to Sell Life Unit to Protective for $1 Billion

April 11 (Bloomberg) -- Axa SA, Europe’s second-largest insurer, agreed to sell a U.S. unit and transfer certain obligations to Protective Life Corp. for $1.06 billion, according to two people with knowledge of the deal.

Axa is selling Mony Life Insurance Co. to Birmingham, Alabama-based Protective, which will reinsure some life policies, said the people, who requested anonymity because the deal hasn’t been announced. Axa will still offer life insurance and retirement products in the U.S. and the agreement doesn’t include the Mony distribution network, the people said.

Axa, led by Chief Executive Officer Henri De Castries, had been seeking a deal to sell some U.S. life obligations to free capital. The Paris-based company has sought to expand in Asia and other emerging markets as a slow European economy and low bond yields weigh on profits.

Cigna Corp. reached a $2.2 billion deal with Warren Buffett’s Berkshire Hathaway Inc. in February to cut liabilities tied to death benefits. Sun Life Financial Inc. agreed to sell its U.S. annuity business in a $1.35 billion deal in December as CEO Dean Connor worked to reduce risk.

Christina Anderson, a spokeswoman for Protective, didn’t immediately respond to requests for comment. Discretion Winter, an Axa spokeswoman, declined to comment.

To contact the reporters on this story: Zachary Tracer in New York at ztracer1@bloomberg.net; Noah Buhayar in New York at nbuhayar@bloomberg.net

To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.