AXA to list US life operations

AXA chief executive Thomas Buberl plans to overhaul the group’s US operations, proposing to float its American life insurance and asset management businesses in 2018 in order to free up capital and pursue takeover targets elsewhere.

In the past investors have questioned whether AXA needs to retain two separate asset managers – AXA IM which is focused on Europe and the US-focused AllianceBernstein Holding, in which AXA holds a 64 percent stake.

“We are convinced our US operations would be better positioned as a listed company in the US, operating on a level-playing field under local regulatory rules,” said Buberl.

A London-based analyst put a valuation of EUR13.4 billion (USD14.6 billion) on the US business, equivalent to more than a fifth of AXA’s market capitalisation.

The proceeds of the IPO would be reinvested in businesses such as health insurance, savings products that do not tie up too much capital, property and casualty insurance. Some of the cash could also be returned to shareholders, AXA added.

“We will be very active now to pursue (M&A) targets,” Buberl told analysts, in a Reuters report.