AXA and UkrSibbank, the Ukrainian banking subsidiary of BNP Paribas, announced today that they have reached an agreement to acquire 99% of the share capital of Vesko, Ukraine’s 6th largest Property & Casualty insurer.
Vesko’s revenues for 2006 of $28 million were well balanced between individual and commercial lines and between proprietary and non-proprietary distribution. In June 2007, AXA and UkrSibbank agreed to join forces in the Ukrainian P&C insurance market, establishing a joint-venture called Ukrainian Insurance Alliance (UIA).
The consolidation of Vesko and UIA’s market shares will give AXA and BNP Paribas the 3rd place (ca. 7% market share) on the fast growing Ukrainian market. Both companies will be held jointly by AXA and UkrSibbank and both will be under the management control of AXA. Completion of this transaction is subject to the customary regulatory approvals and is expected to take place before the end of 2007.
AXA Group is a worldwide leader in Financial Protection. AXA’s operations are diverse geographically, with major operations in Europe, North America and the Asia/Pacific area. For full year 2006, IFRS revenues amounted to €79 billion and IFRS adjusted earnings amounted to €5,140 million. The AXA ordinary share is listed and trades under the symbol AXA on the Paris Stock Exchange.The AXA American Depository Share is also listed on the NYSE under the ticker symbol AXA.
BNP Paribas is a European leader in banking and financial services, and ranks among the world’s top 15 banks by market capitalization. It has 150 000 employees, almost 120 000 of whom are based in Europe. The group occupies leading positions in three significant fields of activity: Corporate and Investment Banking, Asset Management & Services and Retail Banking. It is present in 85 countries and has a strong presence in all the key financial centres. Present throughout Europe, in all its business lines, France and Italy are its two domestic markets in retail banking.
BNP Paribas enjoys a significant and growing presence in the United States and leading positions in Asia and in emerging markets. UkrSibbank, the Ukrainian retail subsidiary of BNP Paribas (which controls 51% of the bank), is the 3rd largest bank in Ukraine by assets. The bank employs 10 500 people in Ukraine and has nearly 1 million individual customers and 69,000 corporate customers. Its regional network currently amounts to 1 000 branches throughout Ukraine. (sev.prnewswire.com)