ING sells Mexico insurance unit to AXA for $1.5 billion

NEW YORK (Reuters) - Dutch banking group ING (ING.AS: Quote, Profile, Research) said on Tuesday it agreed to sell its Mexican insurance business, Seguros ING to AXA SA (AXAF.PA: Quote, Profile, Research) for about $1.5 billion.

ING will divest its nonlife businesses of property and casualty and auto, plus its health and life insurance lines and other units. ING said the sale will allow it to focus on growing its Mexican pension and annuities businesses.

ING expects to realize a capital gain on the sale of between 150 million euros and 200 million euros.

In a statement, AXA said Seguros ING is the third largest insurer in Mexico, with a 12 percent market share and 5.5 million clients.

AXA said Seguros ING is expected to post revenues of about $1.9 billion for 2007.

"This acquisition gives us a leading position in a large growth market on attractive conditions, as we believe we can leverage our know-how to restore ING Seguros' growth and profitability," said Henri de Castries, chairman of AXA's management board.

The deal is subject to regulatory approvals and is expected to close during 2008.

AXA was advised by UBS AG (UBSN.VX: Quote, Profile, Research).

(Reporting by Mark McSherry; Editing by Andre Grenon)