AXA receives offer for reinsurance sector

Stone Point Capital LLC recently placed a binding offer through the new company Paris Re Holdings Ltd. to acquire AXA Re from AXA SA. AXA received the offer of US$14.2 million from Stone Capital for the entire share capital of AXA Re. Other lead investors in the deal, facilitated through the Stone Capital sponsored acquisition company Paris Re, include Hellman & Friedman, Vestar Capital Partners, Crestview Capital Partners, ABN Amro and New Mountain Capital.Under the terms of the agreement, paris Re will absorb by AXA Re by 2007. Paris Re will also take on all risks associated to AXA Re’s 2006 claims. However, all underwriting and claims for 2006 and prior years will continue to be managed by AXA. Furthermore, under the agreement AXA will guarantee the reserves pertaining to losses incurred on or before Dec. 31, 2005.Paris Re says it plans to maintain the leadership of AXA Re’s Hans Peter Gerhardt and to keep the existing employees in moving forward this.AXA has agreed to a period of exclusivity with Stone Point Capital, and intends to respond to this binding offer following consultation with the relevant workers’ councils.