Something like the old Equitable Life Assurance Society of the United States could soon be a stand-alone company.
Executives at AXA, the corporate parent of AXA Equitable, today said that they hope to spin AXA Equitable off as a separate company by June 30, if market conditions make that possible.
(Related: 5 Ways an AXA U.S. Spinoff Could Affect You)
AXA, a Paris-based financial services company, today announced that it plans to acquire XL Group Ltd., a property-casualty reinsurer, for the equivalent of about $15.3 billion in cash.
AXA would pay for part of the deal costs with $4.3 billion in cash on hand and $3.7 billion in subordinated debt.
AXA intends to raise another $7.3 billion through an initial public offering (IPO) of stock in AXA Equitable Holdings Inc.
AXA Equitable Holdings Inc. would include:
- AXA Equitable, AXA’s New York-based life and savings business unit.
- AXA’s interest in AllianceBernstein L.P., the operating partnership that runs the AllianceBernstein money management business.
- AXA’s interest in AllianceBernstein Holding LP, the publicly traded partnership that shares control of the money management business with AllianceBernstein L.P.
AXA Corporate Solutions Inc., AXA’s U.S. property-casualty unit, would not be part of the IPO.
The company would continue to operate in the health insurance market outside of the United States.
AXA faces the tough new European Solvency II financial obligation accounting rules.