Insurance and asset management company AXA has reached an agreement with ING to acquire 100% shares of its Mexican insurance subsidiary ING Seguros for E1 billion.
AXA has said it intends to accelerate and complete the initiated turnaround of ING Seguros by dedicating management capabilities and leveraging the group’s global platforms and expertise, notably in IT and reinsurance. Upon completion of the transaction, ING Seguros will be integrated to AXA’s Mediterranean region unit with an aim to benefit from its know-how in underwriting, claims management, client segmentation, service and brand management.
AXA will finance the transaction with internal resources. The completion of the transaction is subject to customary regulatory approvals and is expected to take place in the course of 2008.
Henri de Castries, chairman of AXA’s management board, said: This acquisition as we believe can leverage our know-how to restore ING Seguros’ growth and profitability. Together with our recent transactions in Asia, Eastern Europe and the Mediterranean region, ING Seguros’ franchise on the Mexican market strengthens AXA’s growth profile, contributing to our ambition 2012 plan and beyond.