AXA to sell 15.6% stake in Taikang Life: chairman

Oct. 29, 2009 (China Knowledge) - France-based insurer AXA SA is selling its 15.6% stake in Taikang Life Insurance Co, China's fourth-largest life insurer, said Taikang Life's chairman, Chen Dongsheng, sources reported.

Chen's speech came after a recent media report on the stake sale by AXA, which hoped to raise about US$1 billion via the deal to strengthen its financial status.

AXA, whose net profit plunged 39% year on year to EUR 1.32 billion in the first half of this year, hired Morgan Stanley to look for a buyer for the stake and invited private-equity firms and strategic buyers to make offers, according to the media report.

In 2006, AXA acquired Winterthur Insurance for US$10 billion, thus obtaining the 15.6% stake in Taikang Life.

In addition to its stake in Taikang Life, AXA holds a 51% stake in AXA-Minmetals Assurance Co, a joint venture with China Minmetals Corp set up in 1999.

In 2008, Taikang Life earned RMB 57.7 billion in insurance premium income and more than RMB 1.7 billion in after-tax profit.