AXA's U.S. Insurance, Asset Management Unit Files for IPOAXA's U.S. Insurance, Asset Management Unit Files for IPO
AXA Equitable Holdings, would have more than $600 billion of assets under management which will come from two existing American channels, AXA Equitable Life and AllianceBernstein.
November 14, 2017
NEW YORK, Nov 13 (Reuters) - The U.S. unit of the Frenchinsurer AXA has filed for an initial public offering(IPO), according to a U.S. regulatory filing on Monday.
The listed company, AXA Equitable Holdings, would have morethan $600 billion of assets under management which will comefrom two existing American channels, AXA Equitable Life andAllianceBernstein, according to the S-1 documentpublished on the website of the U.S. Securities and ExchangeCommission.
AXA currently holds approximately 63 percent ofAllianceBernstein across three entities, ownership of which willbe transferred into AXA Equitable Holdings prior to the initialpublic offering.
No valuation for the new business, in which AXA will retaina majority position after the flotation, was given in thedocument, but a source familiar with the matter said it could beclose to 13 billion euros ($15.16 billion).
AXA Chief Executive Thomas Buberl outlined plans in May tooverhaul the group's U.S. operations ahead of a spin-off IPO in2018, in order to free up capital and pursue takeover targetselsewhere.
JP Morgan Chase and Morgan Stanley have been chosen tocoordinate the IPO, the document said. A number of other bankswill assist as bookrunners on the deal, bankers aware of thematter said.
As part of the reorganization process ahead of the IPO,AXA's U.S. property and casualty business would be transferredto the parent firm. Reinsurance currently in place for AXAEquitable Life would also be unwound, the document added.
Total pro forma revenue of AXA Equitable Holdings in the sixmonths to June 30 was $6.99 billion, according to the SECfiling.
A number of insurance companies have spun off their U.S.life insurance businesses, or are considering such an action,as the low interest rate environment continues to stymie growthin the sector.
In August, Metlife split off its U.S. retailbusiness, Brighthouse Financial, and distributed sharesin the company to its own shareholders. The Chief Executive ofCanadian insurer Manulife Financial Corp said last weekthat it was considering "all options" for its John Hancock unit.($1 = 0.8573 euro)(Reporting by David French; editing by Diane Craft)
