AXA to sell Dutch operations

PARIS—AXA S.A. has entered into a memorandum of understanding to sell its Dutch insurance operations to banking and insurance group SNS Reaal.

Paris-based AXA said it planned to sell its principal Dutch operations to Utrecht, Netherlands-based SNS Reaal for €1.75 billion.

AXA said in a statement that it is considering an exit from the Dutch market because of "the limited possibilities to reach a leading position through organic growth in the foreseeable future, as this market is highly competitive and dominated by large local players."

The operations affected are AXA Netherlands, Winterthur Netherlands and DBV Netherlands, the company said.

AXA's Dutch operations posted a profit of €143 million for 2006, the company said.