AXA agrees to sell CEE business to Austrian insurer Uniqa for €1 billion


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AXA agrees to sell CEE business to Austrian insurer Uniqa for €1 billion

On Friday, the 7th of February 2020, AXA SA, the French multinational insurance firm engaged primarily in global insurance, investment management alongside other financial services made an announcement saying that it had reached an accord with the Austrian insurer Uniqa to sell its businesses in Slovakia, Poland and Czeck Republic for a stark sum of €1 billion or 849.2 million pounds.

In point of fact, the Paris-based insurer, AXA’s latest decision to sell off its assets in some of the critical eurozone countries came forth as the insurer had been falling short of scalability to grapple with a negative interest rate economic environment.

Aside from that, according to AXA’s Friday’s (February 7th) statement, its sale of Polish, Slovakian and Czeck businesses would improve the French insurer’s solvency ratio by 2 points, nonetheless, a spokeswoman for the company was quoted saying late on Friday (February 7th) that the insurer was not expecting any potential change at its earnings’ from the sales.

Besides, the Austrian insurer, Uniqa, which would be purchasing the AXA assets for an undisclosed sum, said in a separate statement on Friday (February 7th) that the company was planning to finance the takeovers by borrowing rather than a capital raise.