AXA to take a stake in Russia's 2nd largest insurer Reso Garantia

AXA announced today it has reached an agreement with Reso Garantia's ('RESO') shareholders to acquire a 36.7% stake in the company for a total cash consideration of ca. Euro 810 million. This investment is expected to be accretive within 3 years. As part of this agreement, AXA will have the option to buy out the remaining stake through calls exercisable in 2010 and 2011. AXA and RESO's shareholders have also agreed to form a joint venture to develop an operation on Russia's emerging life & savings market.