AXA Said to Sell 15.6% Stake in China Insurer

AXA SA is said to be weighing a plan to raise about USD 1 billion via selling a 15.6 percent stake in Taikang Life Insurance Co., Ltd., the fourth biggest life insurer in China, said sources.

The French insurer has invited Morgan Stanley to take charge of the sale, which is expected to be the largest China-based insurance asset sale in recent years. Hurt by the global financial crisis, a list of foreign companies have sold most of the stake they hold in Chinese financial institutions. In addition, a 51 percent stake in AXA-Minmetals Assurance Co., Ltd. should be a reason for it to make such a decision, said industry experts.

AXA-Minmetals Assurance was jointly established by AXA and China-based Minmetals Corp. in Shanghai in June 1999. It has stretched out reach to 12 Chinese cities and provinces and plans to double the number of branches there within two or three years.