AXA to sell stake in China's Taikang Life for US$1 bln: report

Oct. 23, 2009 (China Knowledge) - AXA SA expects to raise about US$1 billion by selling its entire 15.6% stake in China's Taikang Life Insurance Co, sources reported, citing people familiar with the situation.

The stake was inherited from Credit Suisse's insurance unit Winterthur, which French insurer AXA acquired in 2006 in a bid to enhance its leading position in the core European market.

Reportedly, Morgan Stanley has been hired to look for potential buyers for the stake, but the process is still at an early stage. The sale, if successful, will be the largest asset sale of Chinese insurers in recent years.

AXA also set up a joint venture insurance firm with China Minmetals Corp in 1999 and owns a 51% stake in the JV.

Founded in 1996, Taikang Life is the fourth largest life insurer in China. In the first half of this year, the Chinese insurer reaped RMB 34.37 billion in premium income, with 1.92 million new individual clients.