Axa Mulls Sale of Singapore Unit

The French insurer is reportedly considering the sale of its Singapore business as part of plans to raise funds by divesting peripheral operations.

The firm is working with an adviser on the potential sale, which could take place in the next few weeks, Bloomberg reported on Tuesday, citing people familiar with the matter.

The business, which offers life and property and casualty insurance, could draw interest from rivals looking to expand in the region, the report said, noting that the business generated €615 million ($722.71 million) of revenue in 2019, according to Axa’s annual report.

Axa’s net profits in the first half of 2020 tumbled by 39 percent to €1.4 billion euros ($1.7 billion), as it took a hit from customer claims arising due to the coronavirus pandemic.

Axa CEO Thomas Buberl has been trying to shift the firm’s focus on property and casualty insurance, following its $15.3 billion purchase of XL Group in 2018. It has been reviewing options for smaller businesses across the world, including in the Middle East, to help pay for the XL deal, «Bloomberg» said.

Across the border in Malaysia, Axa is looking to raise funds from the sale of the life and general insurance joint ventures with Affin Bank. The sale could fetch some $650 million.