AXA and Crelan have agreed to enter into a long-term P&C and Protection* insurance distribution partnership


AXA Italian headquarters in Milan (Image credit: Kokky92/

AXA announced today that it has entered into an agreement to sell its Belgian banking operations, AXA Bank Belgium, to Crelan Bank (“Crelan”).

Under the terms of the agreement, AXA will sell 100% of AXA Bank Belgium to Crelan for a total consideration of Euro 620 million, comprised of (i) a total cash consideration of Euro 540 million*, and (ii) the transfer to AXA Belgium of 100% of Crelan Insurance (valued at Euro 80 million), the insurance company of Crelan, providing protection insurance linked to loans originated by Crelan.

In addition, AXA and Crelan have agreed to enter into a long-term P&C and Protection insurance distribution partnership, extending the existing partnership between AXA Bank Belgium and AXA Belgium to the entire Crelan network.

AXA CEO Thomas Buberl said:

“This transaction is another important step in the execution of our Ambition 2020 strategy, as we concentrate on businesses with critical scale and continue to simplify our business profile.

“We are extremely pleased to maintain our strong historical links through a continued partnership with AXA Bank Belgium, a key factor in this transaction, and to extend this partnership to Crelan’s network. Combining this with the transfer of Crelan’s insurance business to AXA, our leadership position in our preferred segments in Belgium will be further reinforced.

“We are convinced that AXA Bank Belgium will strongly benefit from the consolidation with Crelan, leveraging on their respective scales and product offerings.

“I would like to thank AXA Bank Belgium’s management team and all the employees for their strong contribution and commitment over the years and wish them every success as part of the Crelan Group.”

Financial impacts

  • This transaction is expected to result in a positive impact on AXA Group’s Solvency II ratio of ca. 4 points.
  • It is expected to result in a one-time negative Net Income impact3 of approximately Euro 0.6 billion in AXA Group’s FY19 consolidated financial statements.
  • Underlying Earnings (UE) generated by AXA Bank Belgium were Euro 47 million* in 2018.

In addition, AXA will take a 9.9% minority equity stake* in Crelan NV* and AXA Bank Belgium, investing a total of Euro 90 million, which will be fully financed by the purchase by Crelan, for Euro 90 million, of the contingent convertible bonds previously issued by AXA Bank Belgium to AXA Group.

Completion of the transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to be finalized in the second quarter of 2020.

Source: Company Press Release