AXA to divest its operations in the Gulf region to Gulf Insurance Group

AXA to divest its operations in the Gulf region to Gulf Insurance Group

(PRESS RELEASE) PARIS, 30-Nov-2020 — /EuropaWire/ — French multinational insurance firm AXA has entered into an agreement with Gulf Insurance Group (“GIG”) for the sale of its insurance operations in the Gulf region, this includes its shareholding¹ in AXA Gulf, AXA Cooperative Insurance Company and AXA Green Crescent Insurance Company.

GIG is a leading insurer in the Gulf region, strengthened by the global footprint and insurance expertise of Fairfax as well as the regional market knowledge of KIPCO, its shareholders.

As part of the transaction, Yusuf Bin Ahmed Kanoo (“YBA Kanoo”), one of the largest conglomerates in the Gulf Region, will also sell its shareholding² in AXA Gulf and in AXA Cooperative Insurance Company.

Under the terms of the agreement, AXA will sell its ownership in its operations in the Gulf region for a total cash consideration of USD 269 million (or Euro 225 million³).

“This transaction marks another step in AXA’s continued simplification journey”, said Thomas Buberl, Chief Executive Officer of AXA.

“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 t heir continuous contribution and engagement over the years, and wish them all the success for the future.”

The transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to close by 3Q 2021.

About AXA and YBA Kanoo’s insurance operations in the Gulf region

AXA and YBA Kanoo are amongst the top 5 insurers4 in the Gulf region. The companies in the Gulf region collectively have over 1,000 employees and serves over 1 million customers through more than 30 branches and sales outlets spread across Saudi Arabia, United Arab Emirates, Bahrain, Oman and Qatar. They distribute a wide range of insurance products and services for corporate and individual customers with predominant focus on Health and Property & Casualty. AXA Cooperative Insurance Company is listed on the Tadawul stock exchange in Saudi Arabia, and AXA Green Crescent Insurance Company on the Abu Dhabi Securities Exchange in UAE.

The Underlying Earnings and gross revenues of AXA’s operations in the Gulf region recorded in the Group’s FY19 consolidated financial statements were Euro 25 million5 and Euro 851 million5 respectively.

About YBA Kanoo

The YBA Kanoo Group holds a portfolio of diversified businesses and strategic joint-ventures in both established and growing markets around the world. Wholly owned activities are spread across the Gulf States: Bahrain, Saudi Arabia, UAE, Oman and Qatar with expanded activities across Africa, Europe and Asia.

With a physical presence across the Middle East, Africa, Europe and Asia, and a large, superbly skilled workforce, the Group operates across a broad range of sectors through an extensive portfolio of complementary businesses and strategic partnerships. Its divisions include: Kanoo Industrial Energy, Kanoo Capital, Kanoo Travel, Kanoo Shipping, Kanoo Logistics, and Kanoo Real Estate.

YBA Kanoo has established solid, long-term joint-venture partnerships with many of the world’s leading companies and, over the years, YBA Kanoo has also become the partner of choice for regional businesses.

About Gulf Insurance Group

Gulf Insurance Group is the largest insurance Group in Kuwait in terms of written and retained premiums, with operations in life and non-life as well as Takaful insurance. Gulf Insurance has become one of the largest insurance networks in the Middle East and North Africa with companies in Kuwait, Jordan, Bahrain, Egypt, Turkey, Algeria, Syria, Iraq, Lebanon, Saudi Arabia and Emirates. Its reported consolidated assets stand at USD 2.8 billion as at 30 September 2020.

¹ AXA’s direct and indirect ownership of AXA Gulf is 50%, of AXA Cooperative Insurance Company is 34%, and of AXA Green Crescent Insurance Company is 28%.
² YBA Kanoo’s direct and indirect ownership of AXA Gulf is 50%, and of AXA Cooperative Insurance Company is 16%.
³ 1 Euro = 1.1957 USD as of November 27, 2020 (Source: Bloomberg).
4 Based on FY19 gross written premium in the Gulf region only i.e. excludes gross written premium related to international business to the extent possible based on available information.
5 Underlying Earnings is on Group share basis, and gross revenues is on 100% basis. Underlying earnings and gross revenues exclude the contribution of AXA Green Crescent Insurance Company, as it is not consolidated in AXA Group financial statements.

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