Through its local subsidiary, US private equity firm Stone Point Capital has placed an offer of E120 million for Axa's reinsurance business, the French insurance giant has revealed.

Officially the approach has been made by Paris Re, the French vehicle of a consortium lead by the equity outfit Stone Point Capital. Under the terms of the deal, Stone Point will pay E120 million above the value of Axa Re’s net assets, while the Gallic insurance titan would maintain a 5 to 10% stake in the business.

Axa said the assets in question were ‘not material’ and that it was not selling the balance sheet of Axa Re, just the right to renewals and the expertise of the team.

The agreement to divest its reinsurance business comes as Axa looks to refocus on its core offerings of life insurance and property and casualty insurance.

Other lead investors in the acquiring consortium include: Hellman & Friedman, Vestar Capital Partners, Crestview Capital Partners, ABN Amro and New Mountain Capital.