Credit Suisse has confirmed that it is to sell its insurance unit Winterthur to AXA. The sale announcement comes after widespread speculatio...

Credit Suisse has confirmed that it is to sell its insurance unit Winterthur to AXA. The sale announcement comes after widespread speculation on AXA’s intention to buy the insurance unit. AXA will pay Credit Suisse SFr12.3 billion ($9.9 billion) for the unit. Analysts say the sale will come as considerable relief for Credit Suisse, which will now focus increasingly on building its “one bank” strategy. “It should benefit Credit Suisse’s private banking operations – not least as the sale will inject a considerable amount of cash into the firm’s balance sheet,” a banking analyst told WealthBriefing. Walter Kielholz, chairman of the Credit Suisse, said in a statement: “Credit Suisse Group is now in a position to focus its management and capital resources on its core banking businesses." In the same statement, Oswald Grübel, chief executive of Credit Suisse, said: "We plan to reinvest the proceeds from the sale of Winterthur in the development of our banking businesses. Our growth plans are focused on organic growth opportunities and selected acquisitions and joint ventures in our investment banking, private banking and asset management businesses. However, we have no intention of making any transforming acquisitions."