April 10 (Bloomberg) -- Axa SA is exploring the sale of a U.S. subsidiary that shoulders risks tied to variable annuities, as Europe’s second-largest insurer narrows its focus in North America, according to people familiar with the matter.

The insurer is working with Morgan Stanley to evaluate options for Jersey City, New Jersey-based Axa Corporate Solutions Life Reinsurance Co., which could fetch $200 million to $300 million in a sale, said the people, who asked not to be identified because the matter isn’t public.

Henri de Castries, the chief executive officer of Paris- based Axa, has been divesting unwanted assets to focus on growth opportunities in emerging markets. Last year, Protective Life Corp. paid $1.06 billion for Axa’s Mony Life Insurance Co., adding a block of life insurance and annuity contracts, most of which were issued prior to 2004. Axa still offers retirement and insurance products in the U.S.