AXA announced that it has completed the sale of its Belgian banking operations, AXA Bank Belgium, to Crelan Bank NV/SA (Crelan), for a total consideration of €691m (£578.2m).
Under the new agreement, Crelan paid a net cash consideration of €611m (£511.3m), and transferred 100% of its insurance unit, Crelan Insurance, to AXA Belgium, which is valued at €80m (£66.9m).
In addition, AXA and Crelan have also entered into a long-term P&C and Protection insurance distribution partnership to extend the existing partnership between AXA Bank Belgium and AXA Belgium to the entire Crelan network.
As per the terms of the initial agreement, Crelan has also purchased the contingent convertible bonds previously issued by AXA Bank Belgium to AXA Group for €90m (£75.3m).
The completion of the transaction is reportedly expected to result in a “positive” impact of four points on AXA group’s Solvency II ratio in Q421.
Thomas Buberl, AXA CEO, said: “The completion of this transaction marks another step in AXA’s simplification journey. We are pleased to maintain strong links with AXA Bank Belgium through this long-term partnership and to further extend it to Crelan’s network.
“I would like to thank the AXA Bank Belgium teams for their continuous contribution and engagement over the years and wish them all the success for the future with Crelan, leveraging on their combined scale and product offering.”