AXA Equitable Holdings to sell certain run-off and closed-block businesses

AXA Equitable Holdings has entered into a definitive agreement to sell US Financial Life Insurance Company (USFL) and MONY Life Insurance Company of the Americas (MLICA), to Heritage Life Insurance Company (Heritage).

The transaction is expected to close in early 2020, subject to regulatory approval and the satisfaction of other closing conditions.

USFL and MLICA were acquired concurrent with the company’s acquisition of the MONY Group in 2004 and have been in run-off since 2007. The businesses have combined net statutory reserves of approximately $1.0 billion.

“This transaction simplifies our balance sheet and is aligned with our strategy to improve the return on capital of our Protection Solutions segment,” said Anders Malmstrom, chief financial officer of AXA Equitable Holdings.

The transaction is consistent with the company’s strategy to reposition its balance sheet toward a higher capital return and less capital-intensive portfolio mix. Proceeds from the sale will be deployed consistent with AXA Equitable Holdings’ capital management program to invest in its core businesses and return capital to shareholders.

Total consideration to AXA Equitable Holdings was not disclosed and is subject to changes in financial condition prior to closing. Wells Fargo Securities served as exclusive financial advisor and Debevoise & Plimpton LLP served as legal advisor to AXA Equitable Holdings in connection with the transaction. Sidley Austin LLP served as legal advisor to Heritage Life Insurance Company.

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