PARIS, Feb. 13 /PRNewswire-FirstCall/ -- AXA announced today it has reached an agreement with ING for the acquisition of 100% of the share capital of its Mexican insurance subsidiary ING Seguros, for a consideration of USD 1.5 billion (ca. Euro 1.0 billion). ING Seguros is the third largest Mexican insurer (12% total market share, 5.5 million clients), with leading positions in key markets such as Motor (2nd largest player with a 17% market share) and Health (2nd largest player with a 19% market share). ING Seguros is also active on the Life market with a 6% market share. ING Seguros' franchise is supported by an extensive proprietary distribution network of 7,500 agents, of which 1,500 specialized life agents. In 2007, ING Seguros is expected to post revenues of USD 1.9 billion(1), a combined ratio of ca. 105%, a net income at break even and shareholders' equity of approximately USD 0.9 billion. The Company's top line has been relatively stable over the last years, as it was gradually withdrawing from some non profitable large P&C business lines, while facing softening conditions in the motor business. AXA intends to accelerate and complete the initiated turnaround of ING Seguros by dedicating seasoned management capabilities and leveraging the Group's global platforms and expertise, notably in IT and reinsurance. Upon completion of the transaction, ING Seguros will be integrated to AXA's Mediterranean Region unit and benefit from its know-how in underwriting, claims management, client segmentation, service and brand management. Combining its strong franchise and AXA's expertise, ING Seguros should be in a position to benefit from the strong growth prospects of the Mexican market, an improved pricing environment and the emergence of under-developed segments (e.g. Household insurance), while extending its product range, particularly in the savings market. "This acquisition gives us a leading position in a large growth market on attractive conditions, as we believe we can leverage our know-how to restore ING Seguros' growth and profitability", said Henri de Castries, Chairman of AXA's Management Board. "Together with our recent transactions in Asia, Eastern Europe and the Mediterranean region, ING Seguros' franchise on the Mexican market strengthens AXA's growth profile, contributing to our Ambition 2012 plan and beyond". AXA will finance the transaction with internal resources. Completion of the transaction is subject to customary regulatory approvals and is expected to take place in the course of 2008. About the Mexican insurance market With a population of approximately 110 million and low penetration(2) rates in both P&C and life (1.8% overall), the Mexican insurance market offers amongst the World's strongest long term growth opportunities. In P&C, only 40% cars and 10% of households benefit from an insurance coverage. On the life side, growth is driven by lack of coverage and an ageing population (25% of Mexicans expected to be over 65 by 2050), fostering the demand for savings and annuity products. In 2006, the Mexican insurance market recorded a total premium volume of USD 15.1 billion, life insurance accounting for 45% of this volume. Mexico is a relatively concentrated market where the first 10 players control over 75% of the market. (Photo: http://www.newscom.com/cgi-bin/prnh/20080212/NYTU146-a About ING Seguros ING Seguros was established in 2001 following ING acquisition of Seguros Comercial America, which itself was a result of several mergers through the 90s. Ranked #3 with a 12.1% total market share and $1.9bn of GWP, ING Seguros has a workforce of 4,200 employees and 7,500 sales agents throughout 54 cities serving 5.5 million clients. ING Seguros' 7,500 insurance agents (61% of premiums) are mainly focused on Auto and Health, while 1500 of them are specialized on life products. Group business and commercial lines are mostly underwritten through brokers (29% of premiums). ING Seguros' investment portfolio is mostly made of fixed income securities (66% Government bonds, 32% corporates) and 2% of equities. ING Seguros benefits from a catastrophe reinsurance program, including a USD590 million excess of loss cover over its USD 10 million retention. AXA intends to maintain a similar level of protection upon closing of the transaction. (Photo: http://www.newscom.com/cgi-bin/prnh/20080212/NYTU146-b This press release is available on the AXA Group web site http://www.axa.com/ About AXA 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. IFRS revenues amounted to Euro 94 billion for full year 2007. The AXA ordinary share is listed on compartment A of Euronext Paris under the ticker symbol CS (ISIN FR0000120628 - Bloomberg: CS FP - Reuters: AXAF.PA). The American Depository Share is also listed on the NYSE under the ticker symbol AXA. (1) Key financials presented in this press release have been normalized, on an IFRS basis, to reflect the scope of the transaction and have not been audited. (2) Source: Swiss Re Sigma reports on World Insurance, P&C includes health IMPORTANT LEGAL INFORMATION AND CAUTIONARY STATEMENTS CONCERNING FORWARDLOOKING STATEMENTS Certain statements contained herein are forward-looking statements including, but not limited to, statements that are predications of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and unknown risks and uncertainties, including the risk that the proposed acquisition may not be consummated. Please refer to AXA's Annual Report on Form 20-F and AXA's Document de Reference for the year ended December 31, 2006, for a description of certain important factors, risks and uncertainties that may affect AXA's business. In particular, please refer to the section "Special Note Regarding Forward-Looking Statements" in AXA's Annual Report on Form 20-F. AXA undertakes no obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or circumstances or otherwise. http://www.newscom.com/cgi-bin/prnh/20080212/NYTU146-a http://www.newscom.com/cgi-bin/prnh/20080212/NYTU146-b http://photoarchive.ap.org/ DATASOURCE: AXA CONTACT: AXA Investor Relations, Etienne Bouas-Laurent, +33-1-40-75-46- 85, or Paul-Antoine Cristofari, +33-1-40-75-73-60, Emmanuel Touzeau, +33-1-40- 75-49-05, George Guerrero, +1-212-314-2893; or Individual shareholders, +33-1- 40-75-48-43; or AXA Media Relations, Christophe Dufraux, +33-1-40-75-46-74, or Clara Rodrigo, +33-1-40-75-47-22, Armelle Vercken, +33-1-40-75-46-42, or Laurent Secheret +33-1-40-75-48-17, or Mary Taylor +1-212-314-5845 Web site: http://www.axa-equitable.com/

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