French insurer #AXA has decided to sell its insurance options in the Persian Gulf to Kuwait-based Gulf Insurance Group (#GIG) for $269 million.
The stakes in AXA sold include Saudi Arabia-based AXA Cooperative Insurance (34%), AXA Gulf (50%), and UAE-based AXA Green Crescent Insurance (28%), where co-investor Yusuf Bin Ahmed Kanoo will sell its shareholdings in AXA Cooperative Insurance Company and AXA Gulf. The deal is expected to be closed by the third quarter of 2021.
Under Chief Executive Officer Thomas Buberl, AXA has been raising funds by dispossessing operations. The insurer caters more than 1,000 employees in the Gulf region and over a million customers covering 30 branches and outlets.
In a statement, Thomas Buberl said that the transaction makes it as another step in the process of AXA’s simplification journey, where its operations in the Gulf region will benefit from GIG’s leadership by delivering growth and excellent customer service in the region.
Gulf Insurance Group backed by Canadian Fairfax Financial and Kuwait Projects Company.
Commenting on the transaction, Gulf Insurance Group CEO, Khaled Al Hasan said that the acquisition is signification in its expansion process and the transaction will give exposure into new markets in Qatar and Oman, alongside increasing operations in the UAE, Bahrain, and Saudi Arabia.