AXA has announced that it has reached an agreement with QBE Insurance Group for the sale of Winterthur's US operations for US$1,156 million (€920 million). In addition, Winterthur US will repay US$636 million (€506 million) of inter-company loans to Winterthur Group.
This transaction follows AXA's decision to put Winterthur US operations under strategic review.
In 2006, estimated Winterthur US operations gross written premiums are US$1,480 million (approx. €1055 million) and net income is US$81 million (approx. €58 million).
The synergy targets announced by AXA for the integration of Winterthur Group are not impacted, as they did not include any cost savings from Winterthur US operations. The transaction is subject to necessary regulatory approvals and is expected to close during the second quarter of 2007.