(Reuters) – The French insurance company Axa said on Thursday that the planned sale of one billion euros ($ 1.2 billion) of its Axa Life Europe unit to Cinven had collapsed, and that it would not make any shareholders in the fourth quarter payments after net profit fell 40% during the first half.
Axa, led by CEO Thomas Buberl since 2016, also lost its 2020 revenue target following an increase in COVID-19 related receivables.
The second largest European insurer, after Allianz, said its half-year profit fell to € 1.43 billion from € 2.33 billion the year before. Total revenue decreased by 10% to EUR 52.4 billion.
Underlying real estate and property sales decreased by 72% to EUR 544 million, mainly due to COVID-1
Axa said that the Board had decided not to propose an exceptional distribution of reserves to shareholders during the fourth quarter after discussions with the supervisory authorities.
The insurer said earlier this year that it could consider proposing a further fourth quarter payment of up to € 0.70 per share if financial market conditions improved.
Axa also said that it and the private equity firm Cinven had agreed to terminate their agreement related to the potential sale of its varia became annuity platforms that "certain conditions for closing were not met by the agreed long deadline."
"We had a deadline to complete this operation until June 30. The conditions were not met," Axas chief financial officer Etienne Bouas-Laurent told reporters during a news conference.
It had entered into the exclusive talks in 2018 and then said that the deal would include a cash payment of 925 million euros from Cinven.
the second part of the dividend and the completion of the divestment of Axa Life Europe to weigh on the shares today, "said analysts at Barclays in a note.
Axa shares opened down 2%.
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