French insurer AXA announced that it has entered into an agreement with Gulf Insurance Group (GIG) to sell its insurance operations in the Gulf region, which includes its shareholding in AXA Gulf, AXA Cooperative Insurance Company and AXA Green Crescent Insurance Company.

Under the terms of the agreement, AXA will sell its ownership in its operations in the Gulf region for a total cash consideration of USD 269 million (EUR 225 million).

The transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to close by 3Q 2021.

AXA's direct and indirect ownership of AXA Gulf is 50%, of AXA Cooperative Insurance Company is 34%, and of AXA Green Crescent Insurance Company is 28%.

As part of the transaction, YUSUF BIN AHMED KANOO (YBA Kanoo), one of the largest conglomerates in the Gulf Region, will also sell its shareholding in AXA Gulf and in AXA Cooperative Insurance Company.

YBA Kanoo's direct and indirect ownership of AXA Gulf is 50%, and of AXA Cooperative Insurance Company is 16%.

GIG is a leading insurer in the Gulf region, strengthened by the global footprint and insurance expertise of FAIRFAX as well as the regional market knowledge of KIPCO, its shareholders.