Fairfax not planning to merge Colonnade Ukraine and the newly aquired AXA Insurance units

25 October 2018 — Daniela GHETU
Canadian group Fairfax Financial Holdings Limited (Fairfax), does not plan to merge the recently acquired Ukrainian AXA units with its insurance company Colonnade Ukraine, First Vice President of AXA Insurance Andriy Peretiazhko said at a press conference on Tuesday, Interfax reports.

He said that Fairfax is a decentralized structure in which each of its companies operates under its own brand. In addition, the operation strategy of the financial group implies full confidence in the management of subsidiaries, minimal interference in their work, the main result of which is profitability.

AXA Insurance Board Chairman Philippe WAUTELET said that before the completion of the deal, which requires permits from the Antimonopoly Committee of Ukraine and the National Commission for Financial Service Markets Regulation, the company will operate under the same name - AXA Insurance. In addition, according to the agreement with AXA Group, the company can operate under this brand within two months after the change of the owner. Most probably, should the entire operation succeed, the rebranding will take place in 2019.

According WAUTELET, AXA's decision to leave the Ukrainian market is in line with the new strategy adopted by the group two years ago with the arrival of the new CEO and his team. Thus, AXA will focus on the large markets and exit from small markets, aiming at optimization of expenses. AXA representatives have also said that given the devaluation of the local currency the group's investment in its Ukrainian units was not returned.

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