AXA to sell its Swiss Privilege franchise in Hong Kong (AXA Wealth Management (HK) Ltd)

AXA announced today that it had entered into an agreement with Jeneration Holdings Limited to sell its Swiss Privilege franchise in Hong Kong, AXA Wealth Management (HK) Limited (AWM).

AWM is a licensed life insurer in Hong Kong, managing individual policies through a network of salaried consultants under the Swiss Privilege brand. In 2016, it represented approximately 2% of AXA Hong Kong’s Life & Savings new business APE.

This transaction would be in line with the Group’s portfolio simplification, and would allow AXA Hong Kong to focus on its core Life agency and broker channels, while simplifying its corporate structure. AXA remains committed to grow the Life, Health and Property & Casualty businesses in Hong Kong across all customer segments including high net-worth individuals.

The price consideration is HKD 2,200 million (or Euro 237 million*) to be fully paid at closing, representing an implied 1.4x EV multiple. The proposed transaction is subject to customary conditions, including the receipt of regulatory approvals, and is expected to be finalized by the end of 2018 or early 2019.

About Jeneration Holdings Limited

Jeneration Holdings Limited is a Hong Kong-based investment holding company. Jeneration and its affiliates invest in the financial services, technology, consumer and healthcare sectors in Asia.

*1 Euro = 9.29 HKD as of December 21, 2017 (Source: Bloomberg)