AXA RE ceded to Paris Re Holdings

AXA SA has signed a definitive agreement to cede the business of AXA Re to Paris Re Holdings Limited. The announcement follows the receipt of a binding offer on April 6, 2006, and after AXA SA consulted with the relevant workers’ councils.

Paris Re Holdings is a newly created company with a capitalization of approximately US$1.5 billion. It is sponsored by a consortium of international investors led by Trident III, L.P., a fund managed by Stone Point Capital LLC. Other lead investors include Hellman & Friedman, Vestar Capital Partners, Crestview Capital Partners, ABN Amro and New Mountain Capital.

AXA will take a stake of approximately 4% in Paris Re Holdings.

Under the terms of the agreement, AXA Re’s business would be ceded in 2007 to Paris Re Holdings. The risks and corresponding net income related to AXA Re’s 2006 claims experience would accrue to Paris Re Holdings. AXA would continue to manage underwriting and claims for 2006 and prior years.

Completion of the transaction is subject to the satisfaction of various closing conditions including obtaining required regulatory approvals.