Axa sells Canadian business to Intact for $2.7bn

image captionAxa wants to make cost cuts of 1.5bn euros by 2015

Axa, Europe's second largest insurance company, has announced it is selling its Canadian unit to Intact Financial.

Intact is paying 2.6bn Canadian dollars ($2.7bn; £1.6bn) for Axa Canada, which is the country's sixth largest general insurance firm.

As well as announcing the sale, Axa has also outlined a five-year plan to raise earnings and reduce debt.

The company said it would target emerging markets, where it wants to double both its size and profitability.

By 2015, Axa is targeting a 10% growth rate for earnings per share, and also plans to make 1.5bn euros ($2.2bn; £1.3bn) of cost savings.

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