Credit Suisse announced Wednesday that it had agreed to sell its Winterthur insurance arm to Axa Group Inc. for $10.87 billion.
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The Zurich banking company said it would reinvest the sale's proceeds in selected acquisitions; joint ventures in investment banking, private banking, and asset management; and organic growth efforts but that it planned no transformational purchases.
Credit Suisse paid $10 billion for the Swiss insurer in 1997.
Oswald Gruebel, Credit Suisse's chief executive officer, said the company wants to build up the private banking business in North America, strengthen its position in fast-growing emerging markets, and beef up its investment banking operations.
