Global insurance giant AXA is to sell its insurance operations in the Gulf region for $269m as part of a broader “simplification” strategy.
Gulf Insurance Group is to take on AXA’s shareholding in AXA Gulf, AXA Cooperative Insurance Company and AXA Green Crescent Insurance Company as part of the deal.
The deal includes AXA’s shareholding in AXA Gulf, AXA Cooperative Insurance Company and AXA Green Crescent Insurance Company. As part of the transaction, Yusuf Bin Ahmed Kanoo (YBA Kanoo), a conglomerate in the Gulf Region, will also sell its shareholding in AXA Gulf and in AXA Cooperative Insurance Company.
AXA CEO Thomas Buberl said the transaction marks “another step in AXA’s continued simplification journey”.
He said: “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.
Together, AXA and YBA Kanoo have over 1,000 employees and serve over one million customers through more than 30 branches and sales outlets spread across Saudi Arabia, United Arab Emirates, Bahrain, Oman and Qatar.
Their predominant focus on health and property & casualty.
The transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to close by the third quarter of 2021.