AXA sells $269m Gulf insurance operations to Fairfax-backed GIG

Global insurer AXA has agreed to sell its insurance operations in the Gulf region to Gulf Insurance Group (GIG) for a total cash consideration of $269 million.

The deal includes AXA Gulf, AXA Cooperative Insurance Company and AXA Green Crescent Insurance Company.

GIG, a leading insurer in the Gulf region, is 43.6 percent owned by Fairfax Financial Holdings, and operates as a joint venture with its major shareholder KIPCO. Gulf Insurance is said to be 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.

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

The transaction is expected to close by the third quarter of 2021, subject to customary closing conditions and regulatory approvals.

Thomas Buberl, AXA's chief executive officer, said: "This transaction marks another step in AXA’s continued simplification journey. 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 their continuous contribution and engagement over the years, and wish them all the success for the future."