AXA sells Belgian Bank and strikes new insurance distribution deal
French insurer AXA is to sell AXA Bank Belgium, and enter into a long-term insurance distribution partnership with Crelan Bank.
AXA will sell 100% of AXA Bank Belgium to Crelan for a total consideration of €620 million, comprising a total cash consideration of €540 million, and the transfer to AXA Belgium of 100% of Crelan Insurance, valued at €80 million, the insurance company of Crelan, providing protection insurance linked to loans originated by Crelan.
In addition, AXA and Crelan have agreed to enter into a long-term P&C and Protection* insurance distribution partnership, extending the existing partnership between AXA Bank Belgium and AXA Belgium to the entire Crelan network.
Thomas Buberl, chief executive of AXA,, said: “This transaction is another important step in the execution of our Ambition 2020 strategy, as we concentrate on businesses with critical scale and continue to simplify our business profile.
“We are extremely pleased to maintain our strong historical links through a continued partnership with AXA Bank Belgium, a key factor in this transaction, and to extend this partnership to Crelan’s network. Combining this with the transfer of Crelan’s insurance business to AXA, our leadership position in our preferred segments in Belgium will be further reinforced.
“We are convinced that AXA Bank Belgium will strongly benefit from the consolidation with Crelan, leveraging on their respective scales and product offerings.”
The transaction is expected to result in a positive impact on AXA Group’s Solvency II ratio of about 4 points.
It is expected to result in a one-time negative net Income impact of approximately €0.6 billion in AXA Group’s full-year consolidated financial statements.
Underlying Earnings (UE) generated by AXA Bank Belgium were €47 million in 2018.
In addition, AXA will take a 9.9 percent minority equity stake in Crelan NV and AXA Bank Belgium, investing a total of €90 million, which will be fully financed by the purchase by Crelan, for €90 million, of the contingent convertible bonds previously issued by AXA Bank Belgium to AXA Group.
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