BNP Paribas is in exclusive negotiations to acquire 100% of AXA Investment Managers, AXA‘s asset management arm, for €5.1bn.
This strategic move is set to significantly enhance BNP Paribas’ asset management capabilities and position it among the top asset managers in Europe, according to Reuters.
The proposed acquisition will see BNP Paribas gaining control over AXA Investment Managers, which currently oversees approximately €1.5tn in assets.
This transaction aligns with BNP’s strategy to scale its asset management operations in a competitive industry that values size for cost efficiencies.
AXA, Europe’s second-largest insurer, plans to concentrate on its core areas of life insurance, savings, property and casualty policies, and health insurance, with the sale marking a significant shift in its strategic focus.
The deal involves BNP Paribas paying €5.1bn in cash for AXA Investment Managers, with an additional €300m allocated for the acquisition of Select, a company within AXA that provides investment solutions.
AXA intends to use €3.8bn of the proceeds from the sales for share buybacks, while the remainder will be invested in both organic and inorganic growth opportunities.
The acquisition is expected to close in mid-2025 and will impact BNP Paribas’s CET1 ratio by approximately 25 basis points.
In a related development, AXA reported stronger-than-expected financial results for the first half of the year. The insurer’s gross written premiums and other revenues rose by 7% year-on-year to €59.9bn, surpassing analysts’ median forecast. Underlying earnings increased by 4% to €4.2bn, with a robust solvency ratio of 227% at the end of June.
AXA also announced the acquisition of Italian insurer Gruppo Nobis for €423m, anticipated to be completed by mid-2025.
Additionally, the transaction includes a 15-year agreement where BNP Paribas will continue to provide investment management services to AXA, underscoring the long-term strategic partnership between the two financial giants.
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