French insurer AXA Group, will sell its insurance operations in the Gulf region, including its share in UAE-based AXA Green Crescent Insurance Company (AXA GCIC), to Kuwait’s Gulf Insurance Group (GIG).

AXA will sell its insurance operations in the Gulf region to GIG for $269 million, AXA said on Monday.

As part of the overall transaction, GIG will also acquire AXA Group's entire shareholding interests in AXA Cooperative Insurance Company in Saudi Arabia and 100% of the share capital of AXA Insurance (Gulf) in Bahrain.

“This transaction marks another step in AXA’s continued simplification journey. We are convinced that AXA’s operations in the Gulf region will benefit from GIG’s leadership and scale in the region, to further pursue their focus on delivering growth and excellent customer service,” Thomas Buberl, CEO of AXA, said in a statement.

Reuters reported that AXA is leaving markets where it lacks scale as part of a deep restructuring to cope with a negative interest rate environment.

(Reporting by Imogen Lillywhite; editing by Seban Scaria)


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