, APAC
229 views
/Edge2Edge Media from Unsplash

AXA sells investment arm to BNP Paribas for $6b

The sale is expected to drag AXA’s earnings by $440m.

AXA has entered into exclusive negotiations to sell its asset management arm, AXA Investment Managers (AXA IM), to BNP Paribas for $5.61b (€5.1b) in cash.

Financially, AXA IM will be classified as 'discontinued operations' in AXA’s financial statements starting FY24.

The sale is anticipated to reduce AXA’s underlying earnings by approximately $0.44b (€0.4b) annually but is expected to generate a one-off net income gain of $2.42b (€2.2b).

AXA plans to offset the earnings dilution with a share buyback of around $4.18b (€3.8b), to be launched immediately after the transaction's completion.

The transaction and share buyback are expected to have a neutral impact on AXA’s Solvency II ratio and no material effect on its key financial targets under the ‘Unlock the Future’ plan.

The transaction, expected to close by the second quarter of 2025, is subject to customary conditions, including employee consultations, the signing of a Share Purchase Agreement, and regulatory approvals.

Additionally, AXA would receive $0.33b (€0.3b) from the sale of Select to AXA IM before the transaction closes, bringing the total estimated value to $5.94b (€5.4b), representing a multiple of 15 times 2023 earnings.

The deal also includes a long-term strategic partnership where BNP Paribas would provide investment management services to AXA. The combined entity would manage $1.65t (€1.5t) in assets, making it a leading European asset manager.

AXA will maintain control over product design, asset allocation, and asset-liability management decisions.

($1.00 = €0.91)

Follow the link s for more news on

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!