Axa plans to sell its activities in Eastern Europe

Axa continues to refocus. The second European insurer would consider divesting its operations in Poland, the Czech Republic and Slovakia, according to Reuters. Information documents were sent to potential buyers, including Poland's largest insurer, PZU, Italian Generali and German Allianz. What could be the price of these disposals? Between 400 million and 800 million euros, advance the news agency.
If Axa did not want to comment on Tuesday this information, such operations would not be surprising. Like the entire sector, Axa suffers from the very low interest rate environment. Above all, this corresponds to the refocusing strategy put in place in 2017 by Thomas Buberl, its managing director.

The latter indicated two years ago that he wanted to focus "on fewer countries, focusing on the size and potential of operations." Still present in more than 60 states, Axa is now focusing on a list of 16 countries. Starting with the ten "engines" (France, Germany, Italy, United States, Hong Kong, Japan …) which represent more than 80% of its results. And six other "high potential" countries (Brazil, Mexico, China, Thailand …). Thus, Axa acquired in 2018 the US specialist in property and casualty XL Group companies. And today, the group is focusing on Asia and reducing its debt.

In parallel, the insurer has also targeted 26 countries that are not profitable or in which it is not critical, where its activities must be sold or restructured. In Poland, the turnover of its subsidiary decreased by 6% in the first half of 2019. Axa has already left Azerbaijan and Ukraine by selling its activities in the latter country to Fairfax Financial Holdings.