AXA has agreed to acquire Credit Suisse unit Winterthur for SFR12.3bn (€7.9bn).
In addition, AXA will pay SFR1.6bn (€1bn) to refinance part of Winterthur's outstanding debt, including SFR1.1bn(€700m) owed to Credit Suisse.
The deal is expected to close around year-end 2006.
AXA said it estimates restructuring charges at around SFR800m (€520m) principally impacting net profit in 2007. It added that the acquisition will be earnings-enhancing from full-year 2007.
The insurer said Winterthur derives 62% of sales from life activities and 38% from non-life, with a client base of individuals and small-medium-sized businesses.
