AXA Enters Exclusive Negotiation to Sell Investment Managers Division to BNP Paribas

AXA has announced exclusive negotiations to sell AXA Investment Managers (AXA IM) to BNP Paribas for a total estimated value of €5.4 billion. The deal includes cash proceeds of €5.1 billion and an additional €0.3 billion from the sale of Select to AXA IM prior to closing. This sale aligns with AXA's strategy to focus on its core insurance businesses: Life & Savings, Property & Casualty, and Health. The transaction is scheduled to finalize by the second quarter of 2025 subject to customary closing conditions.

Under this proposed agreement, AXA and BNP Paribas will enter a long-term partnership where BNP Paribas will provide investment management services to AXA. The combined entity will have assets under management totaling €1.5 trillion. AXA will maintain control over product design, asset allocation, and asset-liability management decisions.

CEO Thomas Buberl emphasized that this move aims to simplify AXA's business model, stressing that AXA's strong distribution and product design capabilities will aid in the growth of its Life & Savings unit. The transaction is expected to yield a one-off net income gain of €2.2 billion and a reduction in annual underlying earnings by approximately €0.4 billion. AXA plans an anti-dilutive share buyback of €3.8 billion following the transaction's completion.

AXA IM will be classified as 'discontinued operations' from FY24 and will remain a contributor to AXA's underlying earnings until the deal closes. The proposed transaction is anticipated to have a neutral impact on AXA’s Solvency II ratio and is aligned with key financial targets of AXA's 'Unlock the Future' plan.