Fairfax not planning to merge Colonnade Ukraine, AXA Insurance
Fairfax Financial Holdings Limited (Fairfax, Canada), which announced the acquisition of 100% of shares in AXA Insurance, does not plan to merge it with its insurance company Colonnade Ukraine, operating on the Ukrainian market, First Vice President of AXA Insurance Andriy Peretiazhko said at a press conference on Tuesday.
He said that Fairfax is a decentralized structure in which each of its companies operates under its own brand. In addition, the operation strategy of the financial group implies full confidence in the management of subsidiaries, minimal interference in their work, the main result of which is profitability.
AXA Insurance Board Chairman Philippe Wautelet said that before the completion of the deal, which requires permits from the Antimonopoly Committee of Ukraine and the National Commission for Financial Service Markets Regulation, the company will operated under the same name – AXA Insurance. In addition, according to the agreement with AXA Group, the company can operate under this brand within two months after the change of the owner.
The conference participants said that they do not have information about the new name of the company. They expressed confidence that the deal will be finalized and the company will be rebranded next year.
Wautelet said that the main reason of leaving the Ukrainian market by AXA was the change of the group's strategy approved two years ago with the arrival of the new CEO and his team. It proposed the focus on large markets and exit from small markets, aiming at optimization of expenses.
The conference participants did not specify the cost of the deal and the size of investment by AXA Group in Ukrainian subsidiaries over the entire period of operation in the country. They said that given the devaluation of the hryvnia, investment was not returned. They said that AXA Group holds 50% in AXA Insurance and UkrSibbank – another 50%. The shareholder in AXA Life Insurance is AXA Insurance.