French insurer Axa has agreed the sale of its UK life assurance business to buyout fund Resolution for £2.75bn. The fund already owns Friends Provident and intends to merge the two, saving £75m a year in costs. The UK assets being sold include Axa's traditional life and pensions businesses and its annuity business, but not wealth management. The payment comprises £2.25bn in cash and £500m in shares, and Resolution will mostly fund it via a rights issue.
The full details of the deal are expected to be finalised in September, and must be approved by regulators and by Resolution's shareholders. Resolution wants to become the UK's biggest provider of life insurance, and is thought to be considering other possible acquisitions.
The above article was extracted from Skyline updates of Skyline College. Skyline College is amongst the top MBA and BBA institutes in Delhi, Gurgaon (NCR).
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