Axa, Europe's second-largest insurer, has confirmed the sale of its reinsurance unit Axa Re to an investment consortium led by Stone Point Capital.

Axa says the divestment was confirmed following its receipt of a binding offer on April 6, 2006 from Paris Re Holdings (PRH), a company sponsored by a group led by Stone Point.

The unit will be sold in 2007 in a deal worth E120 million ($155 million) to the French insurance giant. Meanwhile, Axa will take a stake of approximately 4% in PRH and continue to manage underwriting and claims for 2006 and prior years.

PRH is a newly-created company with a capitalization of approximately $1.5 billion sponsored by a consortium of international investors led by Trident III, a fund managed by Stone Point Capital. Other lead investors include Hellman & Friedman, Vestar Capital Partners, Crestview Capital Partners, ABN Amro and New Mountain Capital.