French giant follows Zurich and Aviva by taking 36.7% stake in major player
AXA has taken a $1.16bn stake in Russian insurer RESO-Garantia.
The deal, for 36.7% of one of the largest insurers in Russia, is expected to complete during the first half of 2008.
AXA said that the investment would be accretive to its earnings within 3 years.
RESO posted revenues of 446 million euros and a net profit of 41 million euros in the first half of this year – making it the second largest insurance company in the country, with a seven percent share of the market.
The move follows the attempts of other insurers, including Aviva and Zurich, the largest player in the country, to exploit Russia's potential as a growth market.
AXA chief executive Henri de Castries said: "This strategic investment is an excellent opportunity for AXA to enter the Russian insurance market, which offers strong growth prospects and a favourable business environment.
"With this acquisition, AXA will further reinforce its growth profile and increase its exposure to emerging insurance market.
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