French insurer Axa (AXAF.PA) said on Wednesday it had entered exclusive talks over the potential sale of its variable annuity products platform to private equity firm Cinven, adding it would raise 1.2 billion euros ($1.40 billion) in total from the deal.
The company said the transaction would include a 925 million-euro cash payment from Cinven for Axa Life Europe (ALE), the platform which designs and distributes variable annuity products in Europe.
It would also incorporate a capital distribution from ALE to Axa of 240 million euros from in June 2018, the firm said.
Axa said ALE was based in Dublin and managed a portfolio of around 248,000 insurance contracts, the majority of which are in Germany. It had some 5 billion euros in reserves and has been closed to new business since 2017. ($1 = 0.8570 euros)