American insurer Protective Life Insurance is the frontrunner in the purchase of picking up AXA SA's life insurance assets. The deal is expected to net around US$1 billion, according to two individuals who spoke on the condition of anonymity.
To manage the sale, AXA engaged the services of Morgan Stanley in 2012 to assist in the thransfer of assets, such as the subsidiary Mony Group Inc which AXA acquired in 2004. The cost of that purchase was US$1.5 billion as a means to expand into emerging markets after years of underwhelming performance in North America.
As a result of the news, Protective Life share values increased by 3% to close at US$35.86 per share at the NYSE. WIth this per price share, the Alabama based insurer is worth around US$2.8 billion.
In purchasing AXA's life insurance assets, the life insurance business of Protective would necessarily expand. It would also help the company diversity from its variable annuity business.
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