PARIS, May 10 ― French insurer AXA said today it plans to list part of its US operations in New York next year, reinvesting or potentially returning the funds to shareholders.
AXA called the listing of a minority stake in its US operations, subject to market conditions, a “strategic decision to create significant additional financial flexibility”.
It said its US activities, which include life insurance and annuity operations plus a 64-per cent stake in AllianceBernstein (AB), a leading asset management firm with nearly US$500 billion (RM2.1 trillion) of funds under management, would benefit from additional flexibility, visibility and stronger growth prospects as a listed company.
It said to strengthen the capital of its US operations before the IPO about US$1.0 billion of debt that AXA US owes to the parent company will be converted into equity.
The funds raised by the IPO may by “reinvested in our target segments notably by acquisitions and/or potentially returned to shareholders depending on opportunities and market conditions,” AXA’s chief financial officer said Gerald Harlin in a conference call.
Under its strategic plan adopted last year, AXA is targeting growth in the corporate insurance, life, and health insurance segments, plus expanding in Asia. It plans to invest some €3 billion by 2020 to develop its businesses.
Harlin reaffirmed AXA’s objective of increasing operating profit per share by three-to-seven per cent per year on average through 2020.
Investors appeared to welcome the IPO plans, with AXA shares rising more than 2.1 per cent in Paris in early morning trading, while the CAC 40 index dipped 0.17 per cent overall.
The company also released some first-quarter figures today.
Revenue dipped 0.1 per cent to €31.6 billion, which missed the 32.6 billion consensus estimate of analysts surveyed by financial information supplier Factset. ― AFP
