France-based global insurance conglomerate AXA is planning to exit Romanian market by divesting life & savings insurance business to Astra Asigurari.
Pending receipt of regulatory approvals, the transaction is expected to conclude after satisfying certain customary closing conditions.
Financial terms and conditions of the transaction have not been disclosed.
The French insurer is expected to dispose of approximately 40,000 insurance contracts and €7m turnover business to Romanian insurer Astra Asigurari, The Diplomat reported.
AXA Romania, which has been operating in Romania since September 2010, has a market share of 2% and more than 700 agents and nearly 200 staff. The company registered an increase of more than 30% in turnover last year.
Unveiling its 2013 development strategies, AXA Life Insurance Romania earlier said that it will concentrate on boosting its retail distribution network, increasing its number of consultants and expanding its distribution channels.
The AXA Group has a work force of 160,000 staff serving 102 million clients in 57 countries.