AXA CEO Thomas Buberl has announced that the planned sale of the asset management division to BNP Paribas will provide the insurer with significant financial leeway to strengthen its core business through a series of acquisitions. The French insurance group announced on Thursday evening that it has entered into exclusive negotiations with BNP Paribas about a transaction that would bring the banking group a leading European fund company with 1.5 trillion euros in managed assets.

If the deal goes through, AXA will receive a total of 5.4 billion euros, of which about 3.8 billion euros will be used for share buybacks to offset the impact on earnings. "We have a significant amount remaining, and if you look at our cash position, we have sufficient funds to strengthen ourselves in the insurance sector," Buberl told the Financial Times. Business areas in property and casualty insurance as well as health insurance are each a "good target," Buberl added.

In addition to the planned BNP deal, AXA also announced the acquisition of Italian insurer Nobis for 423 million euros. Nobis is primarily active in the car insurance sector. "This is the type of acquisition we are aiming for," said Buberl.

AXA aims to further strengthen its core business in important regions such as Europe and Japan, continued Buberl. The decision to sell the asset management division reflects the desire to create a "European champion" that can be competitive in the highly consolidated fund management sector, increasingly dominated by large global firms. "When you look at the consolidation of the industry, [AXA Investment Managers] is certainly not big enough," he stated.

Buberl also emphasized the increasing regulatory burden in every major financial area, which makes it less attractive to combine them under one roof. "The business of asset management and insurance is becoming increasingly different," he said, referring to the sale of banking operations in Belgium in 2019. "Every company has to make its own decisions. For us, it is right to focus... less is more.

Buberl also commented on the political instability in the home market of France, which accounts for about a quarter of the group’s total assets and underlying profits. Although the parliamentary elections in June and July led to a deadlock and created uncertainty about who would lead the next government, unsettling the stock markets, this should not affect the business for the time being.

Everyone needs health insurance, everyone needs car insurance. There are still business owners in France who need insurance," said Buberl. "I look at a country from a structural perspective, in terms of demographics and business climate. France is in a good position.