(Photo: Michael Sohn/AP)
Something like the old Equitable Life Assurance Society of the United States could soon be a stand-alone company.
Executives at AXA, the corporate parent of AXA Equitable, today said that they hope to spin AXA Equitable off as a separate company by June 30, if market conditions make that possible.
(Related: 5 Ways an AXA U.S. Spinoff Could Affect You)
AXA, a Paris-based financial services company, today announced that it plans to acquire XL Group Ltd., a property-casualty reinsurer, for the equivalent of about $15.3 billion in cash.
AXA would pay for part of the deal costs with $4.3 billion in cash on hand and $3.7 billion in subordinated debt.
AXA intends to raise another $7.3 billion through an initial public offering (IPO) of stock in AXA Equitable Holdings Inc.
AXA Equitable Holdings Inc. would include:
- AXA Equitable, AXA's New York-based life and savings business unit.
- AXA's interest in AllianceBernstein L.P., the operating partnership that runs the AllianceBernstein money management business.
- AXA's interest in AllianceBernstein Holding LP, the publicly traded partnership that shares control of the money management business with AllianceBernstein L.P.
AXA Corporate Solutions Inc., AXA's U.S. property-casualty unit, would not be part of the IPO.
The company would continue to operate in the health insurance market outside of the United States.
