Axa wraps up €691M Axa Bank Belgium divestment

Axa SA has closed the sale of Axa Bank Belgium NV to Crelan Bank NV/SA for a total consideration of €691 million.

The amount consists of a net cash consideration of €611 million and the transfer to Axa Belgium of 100% of Crelan Insurance, valued at €80 million.

The parties had amended their original agreement announced in 2019. The French insurer subscribed to additional Tier 1 debt issued by Crelan for an issue price of €245 million instead of acquiring a 9.9% minority equity stake in Crelan for €90 million.

As per the terms of the initial agreement, Crelan also purchased for €90 million the contingent convertible bonds previously issued by Axa Bank Belgium to Axa.

The completion of the transaction is expected to result in a positive impact of 4 points on Axa's Solvency II ratio in the fourth quarter of 2021.

In addition, Axa and Crelan entered into a long-term property and casualty and protection insurance distribution partnership, effective Jan. 1, extending the existing partnership between Axa Bank Belgium and Axa Belgium to the entire Crelan network.