The distribution will be done through Dexia's Turkish subsidiary DenizBank's branch network, for a consideration of EUR24m.

The transaction follows the agreement concerning the life insurance business in Turkey announced on July 27 and will ensure that DenizBank will continue to provide its customers with a full range of insurance products.

Dexia said the transaction would result in a positive P&L impact of about EUR19m after taxes at closing.

The agreement also includes a profit-sharing mechanism, whereby part of the future profits generated by Axa from the sales of its non-life insurance products will be distributed to DenizBank.

The transaction is subject to standard regulatory approvals and is expected to take place before the end of 2011