Sept. 19 (Bloomberg) -- New York Life Insurance Co., the largest policyholder-owned U.S. life insurer, is in talks to buy a Dexia SA unit as part of an expansion in asset management.
The firms entered exclusive negotiations today after an auction process, Dexia said in a statement that didn’t disclose a purchase price. The unit has more than 73 billion euros ($99 billion) under management and operates in 25 countries including Belgium, France and Australia, according to its website.
New York Life Chief Executive Officer Ted Mathas is among insurance executives expanding in asset management to increase fee income. His company struck a deal last year to take a stake in Cornerstone Capital Management Inc.
“New York Life Investments constitutes a solid partner,” the Paris- and Brussels-based company said in the statement. “Dexia is confident in its execution capacities, should an agreement be signed.”
Dexia is being wound down at the expense of French and Belgian taxpayers. New York Life is rated AAA by Moody’s Investors Service, the highest grade.
New York Life Investments had $388 billion in assets under management as of July 31, according to the statement. The business offers stocks, bonds and alternative investments to institutional and retail clients.
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